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Mini Commodities Trading

Mini Commodities TradingFutures (commodities) and margin trading?

Is it true that the decline in the maintenance margin requirements on certain products (mini futures, corn, oats) more risky than commodities? In contrast to the higher (price) margin maintenance. True? This is not true?

No, it's the opposite. More margin requirement ... the riskiest of the underlying investment.

I hope it helped.

No, you can reduce your risk dramatically when you use the options with your futures. Thats what I usually do.

It is not as simple as that.

It is the margin as a percentage of the total value of the contract. lower margin maintenance will say anything - it depends on the price and the number of bushels / oz or what you buy. The margin on a contract for platinum could be $ 5,000, but if platinum is trading at $ 3000/oz, which may well be a lower margin% $ 2,500 on a contract for soybeans, etc.

But generally, the lower the margin, the higher the risk perceived by day, then the opposite of your statement.

Posted on January 25, 2010.
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