Coding Behind Futures Trading
Learn how the backend tracks margins and triggers margin calls.
- Coding Behind Futures Trading
- 1. Margin & Mark-to-Market
- 2. Interactive Margin Call Simulator
- ๐ฆ Mark-to-Market Engine
- Account Status
- ๐ฆ Mark-to-Market Engine
Coding Behind Futures Trading
Understand the logic of Margin Accounts and Mark-to-Market.
1. Margin & Mark-to-Market
In Futures trading, you don't pay the full price of the asset. Instead, you put down a deposit called Margin. At the end of every trading day, the exchange checks your account balance to see if your trades made or lost money (Mark-to-Market).
If your account balance drops below the Maintenance Margin requirement, the system automatically triggers a Margin Call, forcing you to deposit more funds or liquidating your position.
// Backend Margin Check Logic
public void endOfDayCheck(TraderAccount account) {
account.balance += calculateDailyPnL();
if (account.balance < MAINTENANCE_MARGIN) {
triggerMarginCall(account);
}
}
2. Interactive Margin Call Simulator
Step through the backend code execution as the market fluctuates day by day. Watch the system check your balance!
๐ฆ Mark-to-Market Engine
Account Status
Day: 1
Maintenance Margin: $1,000
Balance: $2500
public void endOfDayCheck(TraderAccount account) {
// Daily PnL: $0
account.balance += 0; // Balance is now $2500
if (account.balance < 1000) {
triggerMarginCall(account);
} else {
// All Good. Continue trading.
}
}