Comment by seanhunter
7 hours ago
A futures trade always involves variation margin, and if you read a margin agreement you’ll see it is a credit agreement. That’s so people don’t just run away from trades which are underwater and screw the other side over.
That is something you have to do when you do speculative trades. That has zero to do with managing inventory.
You are not required to take loan to buy futures. You can do so, because then you can bet more then you have. But you dont have to.