Feeder Cattle Futures Margins
(Minimum
Exchange Requirements)
Speculative Account - A speculator in the feeder cattle 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 feeder cattle.
Initial:
$2,025 (The initial margin is the amount of money that needs to be in the account to initiate a trade in
the feeder cattle 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 feeder cattle market is an individual who uses the futures market to offset price risk when intending to sell or buy the
actual feeder cattle.
Initial:
$1,500 (The initial margin is the amount of money that needs to be in the account to initiate a trade in
the feeder cattle 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.)
We
cannot guarantee the accuracy of the margin requirements written above. Margin requirements are set by the exchange and are
subject to change at any time. For current margin requirements please check with your broker or the Exchange where the commodity
trades.
