When trading futures, a trader will put down a good faith deposit called the initial margin requirement. The initial margin requirement is also considered a performance bond, which ensures each party (buyer and seller) can meet their obligations of the futures contract. Initial margin requirements ...
Manyfuturescontracts have options attached to them. Traders also write options. Gold options, for example, are based on the price of gold futures, both cleared through theChicago Mercantile Exchange (CME) Group. Buying the future requires putting up an initial margin of $8,350—this amount is ...
Our results show that the divergence of stock index futures prices from their theoretical values may be due to various trading and regulatory constraints, such as position limits and margin requirements, which play significant roles in Chinese market....
Futures: Familiarize yourself with how futures contracts work. Understand how futures trading involves margin (a deposit you put down) and leverage (borrowed capital), which provides the potential for significant losses and gains. Soft commodities: Learn about the specific soft commodities that interest...
After adjusting for risk, this analysis finds economically and statistically significant negative effects of margin requirements on trading volume as predicted by theory. This study examined 6 contracts over a 17-year time period and found that financial futures contracts (gold, Dow Jones, and 10-...
An Introduction to Inverse Futures Contracts The Inverse Futures Contract also called Coin-M Future Contract, that allows you to long buy...
The SCM accounts directly to the Malaysian Ministry of Finance and is mandated with the regulation of companies that deal with securities and futures contracts on Malaysian soil. Then there is the Shariah Advisory Council of the BNM, which was founded in May 1997. Its mandate is to ensure ...
(2% margin). The client must change his opened position according to the increased margin requirements by the end of the trading session. If the client fails to do so, the company has a right, but not an obligation to reduce the client’s position on its own at closing prices of ...
Federal Regulation of Margin in the Commodity Futures Industry – History and Theory Whether the federal government should regulate margin requirements for commodity futures contracts has been the subject of intensive debate for over fifty ... JW Markham - 《Social Science Electronic Publishing》 被引...
You can trade futures in commodities, currencies, interest rate changes, livestock, oil and gas, securities, and much more. The most traded futures are for equities. For many investors, futures contracts, with their different terms and trading strategies, can be daunting. But the learning curve...