Jump to content

Why trade markets requiring inherently higher margin


Recommended Posts

Hi all,

Maybe I missed a key concept here but why would you choose to trade in markets requiring higher margin?  Margin is calculated based on the underlying "price" of the asset so this inherently can lead to differences in margin requirement between assets.  So why trade assets that need more margin?  If you have the funds to do it fine and if the market is showing some "advantages" on that day ok, is that it?  Margin doesn't really tally with how much you have to lose either if you have a stop.

It seems to me a bit like putting a deposit down on something and one firm requires 10% deposit and another 20% why would you go with the higher, you wouldn't if there was no incentive.

 

 

 

Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      15,449
    • Total Posts
      74,030
    • Total Members
      62,415
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    asdasdasdasdsa
    Joined 21/06/21 18:13
  • Posts

    • does anyone know a phone number where one can listen to market updates like the dow/s&p etc. thanks 
    • Hey,  Are you looking for an additional layer of security when you login or are you asking how your money is protected.  You can enable 2FA as an additional security blanket: https://www.ig.com/uk/two-factor-authentication if you want to know about how your funds are protected you can check this link: https://www.ig.com/uk/client-funds If you have any other questions please let me know by putting @CharlotteIG
×
×
  • Create New...