Dow Industrial Futures Margins
(Minimum Exchange Requirements)
Speculative
Account - A speculator
in the Dow Industrial futures market is an individual who trades in the futures markets with the objective of achieving profits
through the successful anticipation of price movements. The speculator usually has no interest in hedging an equity portfolio. Initial:
$13,750 (The initial margin is the amount of money that needs to be in the account to initiate a trade in
the Dow Industrial futures market.)
Maintenance: $11,000 (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 Dow Industrial futures market is an individual who uses the futures market to offset price risk exposure
to equity in the actual Dow Industrial.
Initial: $11,000 (The initial margin is the amount of
money that needs to be in the account to initiate a trade in the Dow Industrial futures market.)
Maintenance:
$11,000 (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.)
