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How much margin is applicable in the commodities market? How is it arrived at?

April 26, 2017applicable Commodities margin market

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How much margin is applicable in the commodities market? How is it arrived at?

2 Answers

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As in stocks, in commodities also the margin is calculated by VaR system. Normally it is between 5-10% of the contract value. The margin is different for each commodity. Just like in equities, in commodities also there is a system of initial margin and mark-to-market (MTM) margin. The margin keeps changing depending on the change in price and volatility.

0

Posted

As in stocks, in commodities also the margin is calculated by VaR system. Normally it is between 4-10% of the contract value. The margin is different for each commodity. Just like in equities, in commodities also there is a system of initial margin and mark-tomarket (MTM) margin.