Ex - Settlement & Speculate
Example - You are speculating in Hog Futures. You think that the
Spot Price of hogs will rise in the future. Thus, you go Long on
10 Hog Futures. If the price drops .17 cents per pound ($.0017)
what is total change in your position?
30,000 lbs x $.0017 loss x 10 Ks = $510.00 loss
Since you must settle your account every day, you must give
your broker $510.0050.63
-$510 50.80cents
per lbs