No. While exchange-traded derivatives are some of the many tools that are available in the marketplace, producers do not need to contract using Futures or Options on Futures to employ Margin Management. Many alternatives may already exist in one’s local Cash Market that can be effectively used to offset or mitigate the risk associated with forward profit margin opportunities. One might choose to open a brokerage account though to have more tools available at their disposal, as well as to compliment positions they have already taken in the cash market in order to add flexibility in their pricing.
