Future trading is heavily based on futures margin. The deposit, kept with your Future Commission Merchant, is known as the initial margin. Ultimately, the futures exchange’s clearinghouse keeps and records your balance, and ensures you stay above a specified amount. The minimum margin level is set by the clearinghouse, regulators, and brokerages. Any of these parties can increase the total requirement. Investors will have to add more funds if they fall below the minimum margin level.
This leads to an important question: How do they track your margin level while trading? Your futures margin is recalculated daily. Profitable trading positions add to the value. Unprofitable trading positions decrease it. This includes unrealized profits and losses. You can fall below minimum margin before the delivery date. If you fall below minimum margin, you will receive a “margin call”. These notifications display a deadline to add funds and meet margin requirements. Investors who do not add funds may have their positions liquefied into cash until they reach the minimum level. If that does not satisfy the negative balance, they may have their trading rights halted until they deposit more funds. Investors who are profitable on their margin accounts can withdraw money or leave earnings for additional trading.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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