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| The first reason usually is that hedgers will have to put up less initial margin, secondly is the tax liability ,as a hedger all losses are 100% deductible and gains are taxed at your normal tax rate. In a spec. account losses for tax purposes are limited to $3,000 per year and taxes are figured on short term and long term capital gain rates depending on the length of time the trade is on. As for capital if you can't margin at least $1.00 to $2.00 in corn and $2.00 to 3.00 in beans you are just setting yourself for trouble. Hope this helps .Made my first trade in 1979 best advice is to walk slow and watch swift! | |
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Started my brokerage account. naive Qs
