Appendix
Contract Specifications
Margin Requirements
Strategy Reviews
Additional Reading List
Contract Specifications of Commodities
Margin Requirements
Note: Margin requirements often change. Check with your broker for the most recent margin requirements.
Strategy Reviews
Long Futures
Strategy: Buy futures contract(s).
Market Outlook: Bullish or positive on underlying commodity.
Profit Point: Any futures price above the entry price for the underlying contract.
Risk: High. Limited only to price of futures contract falling to zero.
Breakeven: The entry price for the initial position.
Margin Required: Yes.
Figure A.1 Long futures risk graph.
Short Futures
Strategy: Sell futures contract(s).
Market Outlook: Bearish or negative on underlying commodity.
Profit Point: Any futures price below the
entry price for the underlying contract.
Risk: Unlimited.
Breakeven: The entry price for the initial position.
Margin Required: Yes.
Figure A.2 Short futures risk graph.
Long Call
Strategy: Buy call ...
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