Hi,

You have to maintain a minimum amount of margin (RM4000) in your account, so you won't get margin call, unless it drop below the minimum. If let say you have an amount of RM6000 in your account, it can have a maximum loss of RM2000.

Let put it in this way (example),

Let say now FKLI is 1880, and after awhile in drop 10 points to 1870.

You have Long the position at 1880 but it moves against you now.

Calculation:  10 points x RM50 x 5 contract (let say you bought 5 contracts)
                  =RM2500 (loss)

So which mean that you need to top up another RM500. *you will receive a margin call*
[RM6000 - RM2500 = RM3500 (which is not enough of margin in your account, thus you need to top up another RM500)]

Cheers

Quite a good explanation. Thanks.
If I receive a margin call and I don't top up, will the bank force sell my contract ? Or what will happen ?

Now after hari raya, 1 contract is rm4000.

so you might want to put more than rm4000 to avoid margin call/force sell

Quite a good explanation. Thanks.
If I receive a margin call and I don't top up, will the bank force sell my contract ? Or what will happen ?

Of course if you didn't top up, they will force sell.
1 contract is RM4000 though.