A long futures contract gives leverage: in this example where gold is ~6% initial margin, the leverage is 1/6% or 16.6x. When the maintenance margin is breached, a MARGIN CALL requires the long to “top up” back to the INITIAL MARGIN.
Posts Tagged ‘Commodity’
Introduction to Commodity Futures Trading: The Basics
Toronto-based Senior Market Strategist Gord Wiesemann provides a fresh new perspective on commodity futures trading and the secrets of traders.
Commodities and Commodity Futures Trading: The Reason for the Markets Existence (Series)
The Blog Entry that Accompanies this Video is at: investorandtrader.blogspot.com My Daily Blog is at: investorandtrader.blogspot.com Free Issue of Airelons Market Tactics davianletter.com Airelon’s Market Tactics Newsletter: davianletter.com This vlog entry is a continuation in a series of videos, the “Commodities Trading and Futures Speculation”, and is continued from yesterday’s entry. Ok … probably the [...]
12 Features Of Online Commodity Trading And Futures Trading
Online commodity trading and futures trading are by-words today. But this was not the scene always. The original marketers belonged to the 1800s. They were just farmers who wanted to sell what they had grown on their agricultural lands. Crops would be harvested, and produce brought to the market for sale. Not having the educational [...]
An Initiation To Commodity Futures Trading
How It All Began Commodity futures trading, as we know it today, came about for the first time in Japan in the 17th century, where rice was traded in future contracts. It was a period when farmers and buyers came together and decided to commit to each other future prices negotiated on suitable terms in [...]
Commodity Futures Trading
Commodity futures trading; why we love investing in the commodity markets.