#futures #investing #trading In this video, I'll be explaining margin requirements in commodity futures trading, which can be confusing to many investors new to trading futures.
A very common misunderstanding for investors is the term 'margin requirement' and what it exactly means.
Margin, when trading futures, does NOT refer to a loan of funds, such as it does when trading stocks.
When trading commodity futures, the term 'margin requirement' is the amount of funds an investor must have available in their account to trade a particular futures contract. Think of the 'margin requirement' as a 'Performance Bond.' These funds act as a deposit of 'good faith' in return for establishing a position in a given futures contract. ---------------------------------------------------------------------------------- Trying to figure out how to trade futures & options can be overwhelming for many investors. Since 2001, Insignia Futures & Options has been providing futures trading services, education, trade assistance and trade recommendations worldwide - designed to give you confidence in your trading.
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Disclaimer: The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. Past seasonal trends are not indicative of future market action. At no point should the content of this video be interpreted as an expressed or implied guarantee or implication of profit. Client testimonials are not indicative of future performance or success and were received without compensation of any kind. Margin requirements are subject to change without notice.
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