Speculative
Account - A speculator in the corn market is an individual who trades in the commodity futures markets with the
objective of achieving profits through the successful anticipation of price movements. The speculator has no interest in taking
delivery of the corn.
Initial: $2,025
(The initial margin is the amount of money that needs to be in the account to initiate a trade in the corn futures market.)
Maintenance: $1,500 (The maintenance margin is the minimum
equity that must be maintained in the account. If the equity drops below the maintenance margin, a deposit must be made to
bring the account back up to the initial margin.)
Hedge /
Member Account - A hedger in the corn market is an individual who uses the futures market to offset price risk
when intending to sell or buy the actual corn. The ideal situation in hedging would be to cause
one effect to cancel out another.
Initial:
$1,500 (The initial margin is the amount of money that needs to be in the account to initiate a trade in
the corn futures market.)
Maintenance: $1,500
(The maintenance margin is the minimum equity that must be maintained in the account. If the equity drops below the maintenance
margin, a deposit must be made to bring the account back up to the initial margin.)
