Cocoa Futures Margins
(Minimum Exchange Requirements)
Speculative Account - A speculator in the cocoa 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 cocoa.
Initial:
$2,940 (The initial margin is the amount of money that needs to be in the account to initiate a trade in
the cocoa futures market.)
Maintenance: $2,100 (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 cocoa market is an individual who uses the futures market to offset price
risk when intending to sell or buy the actual cocoa.
Initial: $2,100
(The initial margin is the amount of money that needs to be in the account to initiate a trade in the cocoa futures market.)
Maintenance: $2,100 (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.)
