Normal
That is as I understand it also.One thing to be carful of if using margined derivatives such as futures is that you stay within your asset allocation parameters in your investment strategy. for example if you have a 1 Million dollar fund with a max 70% exposure to equities in the investment strategy - the full exposure of the futures contract must not take you beyond that 700k. I'm not sure that increasing the exposure above 100% to allow for the margin ability will cut the mustard with the authorities, because the exposure is not non-recourse .This is just my interpretation so may not be correct.
That is as I understand it also.
One thing to be carful of if using margined derivatives such as futures is that you stay within your asset allocation parameters in your investment strategy. for example if you have a 1 Million dollar fund with a max 70% exposure to equities in the investment strategy - the full exposure of the futures contract must not take you beyond that 700k. I'm not sure that increasing the exposure above 100% to allow for the margin ability will cut the mustard with the authorities, because the exposure is not non-recourse .
This is just my interpretation so may not be correct.
Hello and welcome to Aussie Stock Forums!
To gain full access you must register. Registration is free and takes only a few seconds to complete.
Already a member? Log in here.
