The total of these is the segregated account balance . The total of the two accounts, the segregated account balance plus the open trade equity, equals the total equity . In calculating whether an account meets margin requirements it is the total equity that is considered since this is an approximation of the account's total current actual value, assuming liquidation. The evaluation is approximate because it does not include the commission expenses necessary to close out open futures transactions. Commissions are not charged until transactions are completed.
Margin requirements vary for different commodities.
However, they generally are a small percentage of the value of the commodity. Margin requirements can and do change over time as the prices of the commodities change. For instance, if the commodity experiences a sharp rise in price, generally the margin requirement will be increased proportionately. Also, margin requirements are different depending on the classification of a customer as either a speculator or hedger. A speculator is one who purchases and sells futures contracts for speculative gain or loss.