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what is variation margin letamp;#39;s talk about it in 60 seconds you can read a detailed description under the video variation margin is the amount that a trader receives from any change in the value of futures on the exchange if the trader makes a profit money is credited to his account or if the trader suffers a loss money is debited from his account by the clearing company variation margin occurs within the time frame of one trading session margin calculation occurs for the following cases the conclusion of a futures contract the period after the opening of futures contract and its closure at the time of completion of a futures contract the formula for calculating the variation margin is vm equals ct minus cpu times n where vm equals variation margin ct is the price of a futures contract at the time of settlement cp is the price of a futures contact at the time of the previous clearing n is the futures contract if you like the explanation like and subscribe to the favorite group c