NYMEX Cuts Futures Contract Trading Margins

摘要

For the second time in seven months, the New York Mercantile Exchange has slashed the margins on its coal futures contract. The exchange also lowered the margins for natural gas futures and Henry Hub swaps.A margin is the minimum deposit that is required to trade on a specific contract. The level of the margin is determined by the price risk volatility of that contract; in other words, the risk in the value of an options contract due to unpredictable changes in the volatility of the underlying asset (See trading volume chart, p. 3).