Liquidating margin

Initial margin is original margin, the amount posted when the original trade takes place.The margin is a down payment on the full contract value of a futures contract.Futures exchanges determine and set futures margin rates.In a typical futures contract, the margin rate varies between 5 and 15% of the total contract value.For example, the buyer of a contract of wheat futures might only have to post ,700 in margin.

Margin is a critical concept for those trading commodity futures and derivatives in all asset classes.

Futures margin is a good-faith deposit, or an amount of capital one needs to post or deposit to control a futures contract.


  1. Pingback:

  2. eric   •  

    html { } body { padding:0px;background-color:#008000; } td { font-size:12px;color:#FFFFFF;padding:0px;margin:0px; } .frame { color:white; } a:link, a:visited { color:#FFFFFF;text-decoration:none; } a:hover { text-decoration:underline;color:yellow; } .title { font-weight:bold; } { } div { float:right;padding:0px 6px; } .main_menu { } .login_box_td { font-size:11px;padding:0px;margin:0px; } .login_box_td input { font-size:10px;width:52px;padding:0px;margin:0px;height:12px;line-height:12px; } .

  3. eric   •  

    EDITOR’S NOTE: Contribution by James W., user of Sonic Seduction since 2012.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>