File:Wall Street guide - (1902) (14597825808).jpg

Identifier: wallstreetguide00jlmc (find matches)
Title: Wall Street guide /
Year: 1902 (1900s)
Authors: J.L. McLean & Co.
Subjects: Stock exchanges
Publisher: New York: J.L. McLean
Contributing Library: Columbia University Libraries
Digitizing Sponsor: The Durst Organization

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ies interested, the margin itself being evidence of anexisting contract. The large volume of grain and provisions actuallydelivered on sales on the first working day of eachmonth is simply a delivery of purchases and salesmade for future delivery on a previous date, andquite a large proportion of the shipments to sea-board and other markets is purchased weeks, andsometimes months, beforehand. Before executing an order, a remittance is requiredby all commission merchants, for protection againstchanges in the market, and this remittance is called margin. This remittance should accompany orprecede each order, and should be Chicago exchange,payable to your broker. When additional marginsare required on account of fluctuations in prices, cus-tomers are advised of the amount needed in casethey do not wish their transactions closed when themargin in hand is about exhausted. This additionalmargin should be immediately deposited with a bankat your place, to your brokers credit, and the cashier
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WALL STREET GUIDE. 33 instructed to advise the broker by telegram of theamount so deposited. In case you do not wish todeposit with a bank, advise the broker at once, as hewill then endeavor to call on the customer in timeto remit by mail exchange or currency by express.Bear in mind, however, that the additional margin,if required, should be with the broker before themargins already in his hands are exhausted. EXPLANATORY. If you expect advances in the price of anything, ofcourse you wish to buy it, so that you may sell outhigher. You order your broker to buy, say 5,000bushels of May wheat. You deposit with him, inadvance, a margin of 3 to 5 cents a bushel; that is,from $150 to $250. He then executes your order atthe market price, or waits for a certain specified pricecalled a limit, if you so desire. Suppose he buysyour wheat at 64%. His complete commission forbuying and selling will be % cent per bushel, sothat your wheat will therefore stand you 64%, plus %,equals 65. WHEN THE MARK

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