(Minimum Exchange Requirements)
Speculative Account - A speculator in the soybeans 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 soybeans.
Initial: $4,725 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the soybeans futures market.)
Maintenance: $3,500 (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 soybeans market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual soybeans. The ideal situation in hedging would be to cause one effect to cancel out another.
Initial: $3,500 (The initial margin is the amount of money that needs to be in the account to initiate a trade in the soybeans futures market.)
Maintenance: $3,500 (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.)