Margin

(1) In the case of option transactions, a margin is needed only for the short position. The option holder is not exposed to a risk higher than the price of the option, which is settled in full at the time of the transaction, thereby eliminating all risk. (2) Since the margin is a guarantee provided by the trader or the broker, it must be distinguished from the margin on equity markets, which correponds to credit extended by the broker. (3) There are different margins on certain markets, for example hedge margins and speculative margins (sometimes called unhedged margins). Obviously, the speculative margin is higher than the hedge margin; for example, in the case of canola futures traded on ICE Futures Canada, in April 2009, the hedge margin was $300 per contract, while the speculative margin was $405 per contract.