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EC SoDak | So, my hedges I set last summer(2023) for Dec 24 let’s say they’re at 5.20 Dec 24, today I believe Dec 24 is at 3.95. The people holding the opposite (long side) of my short have to pay me margin calls as the market goes down. So in my example on a 5000 bushel contract, they’ve made $6250 in margin calls to me. I’m able to take that money out (I have to leave some for margin requirements) and use it as I wish. If the price goes up from 3.95, then I pay them some money in margin. So it changes every day and I believe you have 3 days to pay them. However, in a bull run, and my shorts are lower than the market, I have to pay them margin calls, so you have to be prepared to put money in.
Edited by SoDak Farms 8/13/2024 10:22
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So what happened to all this prevent plant?
