Lumber Trading Margins
(Minimum
Exchange Requirements)
Speculative Account
- A speculator in the lumber 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 lumber.
Initial: $1,650
(The initial margin is the amount of money that needs to be in the account to initiate a trade in the lumber futures market.)
Maintenance: $1,100
(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 lumber market is an individual who uses the futures market to offset price risk when intending to sell or
buy the actual lumber.
Initial: $1,100 (The initial margin is the amount
of money that needs to be in the account to initiate a trade in the lumber futures market.)
Maintenance: $1,100 (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 lumber trading margin.)
