Jump to content

Options margin can change because of exchange rate!

Recommended Posts

I wanted to advertise this to everyone, it's a vital piece of information.I heard of one person who got wiped out because he wasn't aware of this, I myself could have suffered from it too.

When you buy options, in theory your margin doesn't change.

However, if your account is priced for example in Euro, and you buy options priced in Dollar, then the exchange rate does affect your margin, and can change it.

Because in this example your margin is priced in Dollars, but your funds are in Euro, meaning if the Dollar goes up you need more Euros to maintain the same margin amount priced in Dollars.

  • Thought provoking 1
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 30/09/22 12:37
  • Posts

  • Create New...