Jump to content
  • 0

Margin requirements for 10-year treasuries seem too high


Lunar

Question

Is there a problem with how much margin is required for CFDs on 10 year Treasuries? To buy or sell one contract (the $2 contract) more than $5000 of margin is required. That's more than I have available, but I'm sure I've traded CFDs on them before. Have the margin requirements changed?

  • Like 1
Link to comment

1 answer to this question

Recommended Posts

  • 0

Yes the margin seems far to high - it is margining based on the underlying futures notional, not the actual risk. For example a 1bp move in treasury yield is 8.3pts in the decimal of the future price, i.e. 1 full $10 contract is only $83 per bp, a normal day could be only 4bp, the margin seems far to high for these contracts. I see the same with Bunds.

Bloomberg states initial margin for 10yr USTs is only $1.5k per contract (100k face value notional / $10 per point).

Also, I have noticed that even with a guaranteed stop in place the margin does not decrease to what the contract specifications say it should (size * contract size * stop distance + guaranteed stop premium).

Can someone from IG please take a look at this, it is impossible to trade rates/bond futures using these margins.

Thank you

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
      23,569
    • Total Posts
      96,879
    • Total Members
      44,146
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    sweettooth
    Joined 29/11/23 22:18
  • Posts

    • I think his partnership with Bitget is actually a success considering considering he also won 2 ballon d'or  and Bitget has continuously grown I the process. I feel more 20 million registered users in 5 years since inception is unprecedented. 
    • That's a wise call and it's important to also confirm that the exchange of your chosen should be in compliance and perhaps licensed in your country. 
    • Investing in crypto could be challenging especially the Fear of Missing out Lambo. This mostly affect traders trading strategy and ideology. Predicting the right time to buy is always cumbersome and that is why many analyst advise DCA because it curtails FOMO and gives you a long-term crypto trading mentality. In crypto Dollar Cost Averaging involves investing the same amount of money in a target token at regular intervals over a certain period of time, regardless of price. This will help to control volatility on your portfolios and minimize FOMO For example when you decide to invest $100 on a token and invest $10 daily or weekly or monthly till you fulfilled you $100 target investment on the token irrespective of the price of the token. This strategy helps a crypto trader to build his portfolio over the long term thereby he/she is not bothered by short-term volatility in the broader markets. This strategy mostly favours low-budget traders in building a strong portfolio but the problem most normally encounter is exchange minimum trading amount. One analyst advised on how to mitigate this was to accumulate on exchange that has lower trading fees and later send to where you desire to hold. He also noted that some of this exchanges are good in listing good projects for you to be among the early birds. Do you think DCA is the best method to accumulate token and which exchange offers the lowest tradeable balance and trading fees?
×
×
  • Create New...
us