Series 3: 3.4.4. Spread Margins

Taken from our Series 3

3.4.4. Spread Margins

In Chapter One we discussed the margin requirement for futures contracts. Margin is a fixed dollar amount set by the exchanges, which have the right to alter the requirement at any time during the life of the contract. Depending on the commodity, margin requirements generally range between 3% and 10% of the market price of t

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