Oats Futures Margins
(Minimum Exchange Requirements)
Speculative Account - A speculator
in the oats 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 oats.
Initial: $1,350 (The initial margin is the amount of money that needs to be in the account
to initiate a trade in the oats futures market.)
Maintenance: $1,000 (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 oats market is an individual who uses the futures market to offset price
risk when intending to sell or buy the actual oats. The ideal situation in hedging would be to cause one effect to cancel
out another.
Initial: $1,000 (The initial margin is the amount of money
that needs to be in the account to initiate a trade in the oats futures market.)
Maintenance: $1,000 (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.)
