Rogue Trader
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:12:01
# ''Money'' continues
:12:07
They were a good bunch
and they were keen to learn.

:12:11
lt looked like a madhouse with
all the traders waving and shouting,...

:12:15
..but it all made sense
once you got the hang of it.

:12:18
There were hiccups,
but that's normal in any operation,...

:12:21
..especially a new one like ours.
:12:25
The important thing was
we were picking up the business...

:12:28
..and the future looked rosy.
:12:42
Nick, what's the difference between
initial margin and variation margin?

:12:47
lnitial margin's a down payment
on each futures contract that we trade.

:12:51
We don't pay in full
until a contract matures.

:12:53
But in the meantime the value of
each contract may go up or down.

:12:57
So SlMEX calculate our positions
on a daily basis.

:13:00
They'll ask for more money if the market
goes against us. That's variation margin.

:13:04
Got it. l think!
:13:09
We need to open an errors account.
We've had a few mistakes.

:13:13
l need somewhere to put them
till l can write them out.

:13:16
Sure. What number shall l give it?
:13:18
- Well, what's your lucky number?
- Eight. lt is a very lucky Chinese number.

:13:22
And how many numbers do we need?
:13:24
Five.
:13:26
Then let's give it all the luck it can handle.
Call it the 88888 account.

:13:50
And now it gives me great pleasure to
welcome the chairman of Barings Bank,...

:13:56
..Peter Baring.

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