Wheat Futures Margins
(Minimum Exchange Requirements)
Speculative Account - A speculator in the wheat 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 wheat.
Initial: $3,375 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the wheat futures market.)
Maintenance: $2,500 (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 wheat market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual wheat. The ideal situation in hedging would be to cause one effect to cancel out another.
Initial: $2,500 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the wheat futures market.)
Maintenance: $2,500 (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.
Grain and Oilseed Hedger's Guide
Click on the link above to download a very informative .pdf brochure entitled "Grain and Oilseed Hedger's Guide." It was published by the CME Group. This is a must read guide for any novice or advanced trader considering an hedge in the soft red winter wheat market using exchange traded CBOT wheat futures and options.
Click here to contact a licensed commodities broker with experience in the wheat market.
