Wheat

[b0rderc0llie]

Think the margin differs with each brokerage. I checked the contract for different months. They all give the same initial margin requirement.

[lithium]

OK, can you check margin of Mini hang seng & Mini H-shares for me

Over here is HK$13030 & HK$8690 respectively.

[b0rderc0llie]

I am using optionsxpress. They don't have access to the HK market.

[kennynah]

hmmmm....interesting that you guys are enjoying a discount from what CME requires as initial margin


below taken from CME

WHEAT (W)-WHEAT FUTURES (W)
Spec - ...........New Crop $2,363 $1,750
Hedge/Member - New Crop $1,750 $1,750

the left figure is Initial Margin Requirment...the 2nd is Maintenance Requirement..

[kennynah]

This margin changes with prices right? The list I'm refering to is 4th Aug 2010, maybe this is the reason.

this initial margin requirement is also known as Performance Bond, which is required by the clearing firm and administered thru every brokerage... it does not fluctuate with different months or price of the futures...

the amount changes based purely on the clearing house, but usually it is becos of sudden volatility that they will ask for more performance bond; ie. higher initial requirement...

lithium...i suspect that the one you saw, is for wheat mini-futures....much like sp500 e-mini futures (/ES) which has 5 times smaller initial requirement compared to sp500 futures...

[lithium]

Thanks Kenny ko for enlightening.

But over here Mini Wheat is only US$338 wor. Trading on CBOT exchange, correct ah?

[kennynah]

OK, can you check margin of Mini hang seng & Mini H-shares for me

Over here is HK$13030 & HK$8690 respectively.

here it is...from CME

WHEAT (W)-MINI-SIZED WHEAT FUTURES (YW)
Spec - ..........New Crop $473 $350
Hedge/Member - New Crop $350 $350

i will not be surprised at all that POEMS asks for a lot more .... they want to buffer themselves against non-performance...

[lithium]

OK, can you check margin of Mini hang seng & Mini H-shares for me

Over here is HK$13030 & HK$8690 respectively.

here it is...from CME

WHEAT (W)-MINI-SIZED WHEAT FUTURES (YW)
Spec - ..........New Crop $473 $350
Hedge/Member - New Crop $350 $350

i will not be surprised at all that POEMS asks for a lot more .... they want to buffer themselves against non-performance...

Erm..... Kenny ko, you comparing Hang seng index with Wheat ?

[kennynah]

hi lithium,

i meant that i suspect that the figure below is for mini wheat futures... be good if you can confirm...bcos, usd1688 as initial margin is way below even CME's requirement of usd2363/contract for full-sized wheat futures..

BC's figure at usd2344 is closer and it could be for his preferred customer "status"

I see US$1688 at Poems

[lithium]

Ok kenny, happy trading wheat