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Options margin can change because of exchange rate!


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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.

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