Rough Rice Futures Margins
(Minimum Exchange Requirements)
Speculative Account - A speculator
in the rough rice 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 rough
rice.
Initial: $2,430 (The initial margin is the amount of money that needs
to be in the account to initiate a trade in the rough rice 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 rough rice market is an individual who uses the futures market to offset
price risk when intending to sell or buy the actual rough rice. The ideal situation in hedging would be to cause one effect
to cancel out another.
Initial: $1,800 (The initial margin is the amount
of money that needs to be in the account to initiate a trade in the rough rice 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.)
