Pea Bin MT

[crusher]

Got $7 for my yellows in the bin, so they're leaving, April delivery. Still taking my lumps on canola and FPC wheat.

Cotton, you must be getting margin calls.

[cottonpicken]

I dont use margin.
7$ peas eh who would of thought?

[chaffmeister]

Don't use margin?

Thought you traded. Do you trade commodity-based equities? Gold Mines and such? (Not requiring margin, unlike futures.)

How do you trade grains? Inventory in the bin?

Just curious.

[cottonpicken]

???????

Margin is simply debt leverage with a small amount of purchased stock,commodity,currency or bond as security.A margin call is when the price goes against you and you have to supply cash to cover your position.

You do not have to have debt to buy a futures position.

I'm strictly in commodity stocks of a non grain nature because i'm a farmer and need a little diversification.

Commodity futures and margin are not for me because i like to sleep at night.

[chaffmeister]

CP – thanks for the clarification. FYI - margin is not debt – it is leverage, but not debt.

And you’re right – you don’t need to have debt to enter a futures position – but you do need margin. (In fact, you should never, ever, use debt to trade futures.)