Are the Margin Requirements Different for Hedgers and Speculators?

Yes, margin requirements are often different for bona fide hedgers compared to speculators. Exchanges typically set lower margin requirements for hedgers because their positions are considered lower risk.

A hedge is designed to offset risk from an existing position in the underlying asset, meaning the overall risk profile of the hedger is lower. Speculators, who are taking on new risk, are usually required to post a higher margin to cover potential losses from adverse price movements.