Live Cattle Futures Margins
(Minimum Exchange Requirements)
Speculative Account - A speculator in the live 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 live cattle.
Initial:
$1,620 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the live cattle futures
market.)
Maintenance: $1,200 (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 live cattle market is an individual who uses the futures market to offset price risk when intending to sell
or buy the actual live cattle.
Initial: $1,200
(The initial margin is the amount of money that needs to be in the account to initiate a trade in the live cattle futures
market.)
Maintenance: $1,200 (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.
