Margin Requirements

Producer Margins

(Updated 09/19/2019)

Margin Policy

Margin is a good faith deposit for performance of futures contracts; therefore, customers must make margin deposits in a timely manner. Exchange Rules require that customers deposit margin call funds IMMEDIATELY upon notice of the margin call. If margin funds are not received in the CHS Hedging St. Paul office within 5 business days, CHS Hedging will require a wire transfer for the full amount of the margin call. Additionally, customers will be required to wire funds for any margin call which is $10,000 or greater.* Until the required margin deposit has been received, it is our policy not to permit any customer to withdraw funds from their account, even in the case of favorable market movement. Failure to meet a margin call will preclude customer from initiating new positions and will ultimately result in the closing of the account. 

CHS Hedging will not cancel any margin calls except in cases of (1) total liquidation or (2) error. Failure to promptly deposit adequate margin funds shall entitle CHS Hedging to liquidate any position customer may have with CHS Hedging without prior notification to the customer. This liquidation does not release customer from any liability previously incurred. In the event liquidation proceeds are insufficient for the payment of all liabilities, customer shall promptly, upon demand, pay to CHS Hedging the deficit, together with interest equal to 1 ½ percent monthly, an all costs of collection (including attorney’s fees, should CHS Hedging refer the matter to legal counsel). 
Customers may use one of the following methods to meet margin calls: 
  1. Please contact CHS Hedging at 800-814-0505 for detailed wire instructions. 
  2. Check made payable to CHS Hedging. 

CHS Hedging cannot accept cash or credit cards. In addition, funds coming into the account must match the name on the account.

Security Loan Agreement: Third-party loan agreements between Customer, CHS Hedging and your bank are available. For more information, contact our Compliance Department at 800-814-0505. 

*A customer may be allowed to replace a wire transfer with an ACH under certain pre-approved circumstances.