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For LME parent metal contracts, profits are not immediately realised but become due only on the prompt date of the contracts, and discounted to present value, whilst unrealised losses have to paid up or covered by collateral or bank guarantee each day whilst the LME parent metal contract positions are open.
For LMEmini contracts, variation margins are realised each day unlike the parent metal contracts. Daily variation margin payments and receipts are debited or credited to the clearing members' accounts at LCH.Clearnet during the life of the open LMEmini position. The LMEmini variation margins are therefore not discounted.
Click here to download working examples of LMEmini initial margining.
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