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To: taildragger
Comparing margin trading in stocks and the ''margin'' required in futures mkts is so wrongheaded as to be laughable.

Stock shares represent proportional ownership of a company, and a 50% cash figure is a quite reasonable requirement when dealing with ownership.

Futures ''margin'', contrarily, is simply a performance bond ensuring that the hedger or trader will hold to the terms of the contract traded, as well as be responsible for any trading losses.

Now, where in your experience, where on this planet does someone require a 50%-of-net-contract-value as a performance bond?

Sheesh.

10 posted on 05/23/2008 1:11:27 PM PDT by SAJ
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To: SAJ
Now, where in your experience, where on this planet does someone require a 50%-of-net-contract-value as a performance bond?

Government contracts?..........

13 posted on 05/23/2008 1:13:43 PM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: SAJ

Gentlemen et-al, futures have and never will be my speciality, Thanks for the education. My Best, Taildragger


39 posted on 05/23/2008 3:24:44 PM PDT by taildragger (The Answer is Fred Thompson, I do not care what the question is.....)
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