Trade Meats | Livestock Futures

Feeder Cattle Margins

Home
About Us
Live Cattle
Feeder Cattle
Lean Hogs
Education
Quotes and Charts
Market Analysis
Free Demo Account
FAQs
Open Account
Contact Us
feeder.jpg

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.

An Overview Of CME Commodity Futures For Hedgers

Click on the link above to download a very informative .pdf brochure entitled "An Overview of CME Commodity Futures for Hedgers.” It was published by the Chicago Mercantile Exchange. This is a must read guide for any novice or advanced trader considering a hedge in the feeder cattle market using exchange traded feeder cattle futures and options.

Click here to contact a commodities broker with experience in the feeder cattle market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicitation. This material is not a research report prepared by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

© 2011 Van Commodities, Inc. All Rights Reserved