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.

 

 

 

Share this post


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
You are posting as a guest. If you have an account, please sign in.
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.


×
×