34 BULLETIN 1444, U. S. DEPARTMENT OF AGRICULTURE 
accepted by anyone. Orders to buy or sell all or none are not per- 
mitted, but in case a partial and a total acceptance come simultane- 
ously, the latter is given precedence. 
Making the purchase or sale. — Only members or their designated 
agents can execute contracts in the futures market. An outsider who 
wishes to trade in futures must execute his orders through a member 
of the exchange. The amount of the commission is fixed by the rules 
of the exchange. The amount and method of putting up margins 
with the broker is a matter of private arrangement. When these 
details are arranged, the client gives the broker the kind of order 
he sees fit. If he is away from the market, he wires, usually in code. 
His wire must state whether purchase or sale is desired, the kind of 
order, the number of contracts, and the delivery month. Immedi- 
ately after the order is executed the broker wires the client the results 
as: " Sold two Octobers 25.20." 
When the broker receives the client's order, he proceeds to execute 
it at the first opportunity. Normally, it is delivered immediately, to 
the firm's representative in the ring. If it is a sale he calls the month, 
indicates the number of contracts with his fingers, and pushes his 
hands away from him. If he is buying, he moves his hands toward 
himself. 
The buyer or seller of a future contract is required to deposit a 
certain sum of money subject to the claim of the one with whom he 
is dealing in case of and to the extent of adverse price fluctuations. 
This is known as a margin and is essentially a trading balance de- 
posited by one firm with another as a guarantee against loss due to 
fluctuations in the market. The "original margin" is a lump sum 
of a specified number of dollars per, bale which must be deposited in 
an approved place and, in case of and to the extent of an adverse 
movement in price, subject to the demand of the opposite party to 
the contract. The supplementary or trading margin is put up to 
offset adverse price changes. For example, the party to a contract 
that is losing because of changes in price may be called upon to put 
up an additional amount to cover the variation in the market, or the 
amount the original margin has been impaired. 
The size of the original margin is determined by the board of 
directors within certain limits prescribed by the rules of the ex- 
change. They can change the amount of margin required on 24 
hours' notice. The limit, as provided by the rules of the New York 
exchange of February 1, 1924, was from $1 to $5 per bale. The 
margin is put up with the clearing house on the net short or long 
interest plus some additional amounts for straddles, or for condi- 
tions where prices of one month are out of line with other months. 
The amount of the variation margin depends on the fluctuations 
of the price. The bid prices for the calls for each month are posted 
daily, except Saturday, at one-half hour after opening of the ex- 
change and at 1 p. m., and these govern all calls for variation margins. 
The time of putting up such margins varies with the time they are 
called and the length of the business day. On all business days 
except Saturday, for instance, variation margins called before 12 
