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Why trade markets requiring inherently higher margin

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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.




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