Speculative Account - A speculator in the cotton 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 coton.

Initial: $2,520 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the cotton futures market.)

Maintenance: $1,800 (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 cotton market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual cotton.

Initial: $1,800 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the coton futures market.)

Maintenance: $1,800 (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.)