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How is the margin calculated in commodity trading?

April 26, 2017calculated commodity margin trading

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How is the margin calculated in commodity trading?

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Margins are calculated at a certain percentage prescribed by the exchange every day. These margin percentages are decided by the exchange considering the market conditions, volatility and other factors. Margins are applied to the total contract Value of the position taken by a client. If you wish to know the margins applicable to specific commodity of your interest, you can contact us for the same.