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Premium charges

Personal Finance & Money Asked by Jan Pech on December 26, 2020

can anybody explain me please what Premium charges in CBOT Rulebook – https://www.cmegroup.com/content/dam/cmegroup/rulebook/CBOT/II/14/14.pdf (section 14108 Premium charges) are? I am somehow missing the point. Is it additional charge you need to pay extra when buing futures contract? Is it paid for whole time between two contracts – like it is described in the formula – mostly for 90 calendar days in grains? Or it is not something which has to be paid and it is there only to see what financial full carry would be so we can check it compared to next future contract month´s price?

One Answer

I believe this only applies to the physical delivery of these wheat futures.

If you don't physically deliver them, I don't think they apply at all.

Perhaps you are getting confused with margin.

Answered by ThatDataGuy on December 26, 2020

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