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Livestock Futures
Livestock Futures are traded on the CME and GLOBEX. Below are the main Livestock Futures that are traded, The value of each Price Increment Point (PIP) can be calculated by multiplying the PIP by the Contract Multiplier. The profit or loss of each trade can be calculated by multiplying the number of pips gained or lost by the contract multiplier.
When placing a Livestock Futures trade the broker will take some money from your cash account and set it aside in your margin account. For example if you were to use a gearing ratio of 1:40 the broker would take 2.5% of the value of the contract and put it into margin. The estimated margin of trading each grain contract is given below.
When trading Livestock Futures it is important to know that generally there is better liquidity when trading in the pit (CME), but to protect your position it is possible to use the GLOBEX for your stop loss order.
| Livestock | Symbol | PIP | Contract Multiplier | PIP Value | Approx Margin |
|---|---|---|---|---|---|
Feeder Cattle |
GF |
0.025 |
50,000lbs |
$12.50 USD | $1500 USD |
| Lean Hogs | HE | 0.025 |
40,000lbs |
$10 USD | $1500 USD |
| Pork Bellies | PB | 0.025 |
40,000lbs |
$10 USD | $1600 USD |
| Live Cattle | LE | 0.01 |
40,000lbs |
$4 USD | $1000 USD |
Disclaimer: This information is obtained from sources believed to be reliable. However, WorldCommodityExchange.com cannot guarantee its accuracy. Contract Specifications are subject to change. Margins are subject to change at any time, please consult your broker for additional information on current margin requirements and a suitable level of gearing.
Disclosure Statement
All markets have inherent risks. Futures and options markets are no different and involve substantial risk of loss and is not suitable for all investors. Investors may lose more than their initial investment. Past performance is not indicative of future results. Investors must employ suitable risk management strategies to ensure that they can preserve capital if they run into a series of losses.
