The broker has an initial
margin position requirement to open the position, if the price moves against me on a particular day (past the initial margin requirement) the broker gives me until 2 pm the following day to deposit the funds required for the additional margin.
Not exact matches
The
margin requirement for long
positions will be set t 50 % of the prior day's lead month settlement price.
To open a new
position, your available account equity must exceed the trade's initial
margin level
requirement.
Should your equity fall below the minimum amount, Xtrade will automatically execute a
Margin Call trade and close any open
positions until your account equity exceeds the Maintenance
Margin level
requirement.
Please note that Saxo Bank reserves the right to increase
margin requirements for large
position sizes, including client portfolios considered to be of very high risk.
A 2 %
margin requirement means that, if you wish to open a new
position, then you must have 2 % of the size of that
position available as
margin.
Once a trader meets the initial
margin requirement, they are required to maintain the maintenance
margin level until the
position is closed.
If trading is unavailable for certain open
positions at the time of the
margin closeout, those
positions will remain open and the fxTrade platform will continue to monitor your
margin requirements.
The amended
margin requirements will be applied to all open
positions on instruments containing the Czech koruna after the session close on Friday, 19 May, 2017.
Brokers frequently close
positions that violate internal or external
margin requirements as soon as they are breached.
Therefore,
margin requirements are essentially a form of collateral, which backs the
position and reasonably ensures that the shares will be returned in the future.
(The
margin requirement for a long
position is also 50 %.)
Less
margin: because of the lower volatility, the exchanges set
margin requirements for many futures trading spreads that can be much less than an outright futures
position.
Similarly, some brokers hiked the
margin requirements and set the
positions to close only on the TRY following the failed coup d'etat attempt in Turkey last July, which sent the Turkish lira plumetting for several days.
This allows me to reinvest the funds held up in the
position (option
margin requirements) into a new
position with greater profit potential.
If the silver
position lost let's say $ 300 one day, the value of the $ 1,000 initial
margin would now only be $ 700, which is below the $ 750 maintenance
requirement.
Spread trading is usually considered to be a lower risk strategy than an outright long or short futures
position, and therefore
margin requirements are usually less.
When day - trading, the exchanges provide lower
margin requirements so that less capital is required, since the
position is not being held overnight.
You only need make sure to have enough equity to open
positions of sizes you are comfortable with including
margin requirements.
When
position sizing individual systems, it is important to look at the draw down plus
margin requirements to determine the minimum amount of capital needed to trade each trading system.
Your
positions, whenever possible, will be paired or grouped as strategies, which can reduce your
margin requirements.
However, keep in mind, depending on your existing
positions, if investing the entire $ 60,000 into a single
position results in a concentrated
position, additional
margin requirements may apply.
Access all of your critical IB account data, including
positions, balances and
margin requirements, through your own custom IB API application.
Risks associated with derivatives (including «short» derivatives) include losses caused by unexpected market movements (which are potentially unlimited), imperfect correlation between the price of the derivative and the price of the underlying asset, increased investment exposure (which may be considered leverage), the potential inability to terminate or sell derivatives
positions, the potential need to sell securities at disadvantageous times to meet
margin or segregation
requirements, the potential inability to recover
margin or other amounts deposited from a counterparty, and the potential failure of the other party to the instrument to meet its obligations.
Margin requirements for spreads are generally lower than outright long or short
positions, and whether the price increases or decreases the traders risk is limited to the change in the spread, since both a long and a short
position are held at the same time.
In the event that money in your account falls below
margin requirements (usable
margin), your broker will close some or all open
positions.
1 The maximum
requirement is determined as the aggregate
margin requirement against uncovered option
positions on the same side of the market for an individual underlying security.
Margin requirements may be changed based on account size, simultaneous open
positions, trading style, market conditions, and at the discretion of FXCM.
This is to attempt to partially protect IB and its customers from those accounts that have very risky
positions that currently satisfy exchange
margin requirements, but nonetheless could suffer excessive losses in the event of a significant market move (for example, accounts with high exposure to short option
positions).
Although the
margin call feature is designed to close
positions when account equity falls below the
margin requirements, there may be instances when liquidity does not exist at the exact
margin call rate.
If account equity falls below
margin requirements, the FXCM Trading Station will trigger an order to close all open
positions *.
A few types of
margin are singled out: initial
margin,
margin requirement, i.e. the one locked up in the account as a guarantee in case of losing
position, and minimum
margin, maintenance
margin, needed to keep the
position open.
Oftentimes, individual brokers may also raise the maintenance
margin requirements on these stocks, which forces more short sellers to downsize their
positions.
Since your cash becomes the
margin requirement which usually is only 30 % so with a 70k cash balance you can easily have a 150K short
position opened.
Your
positions will get liquidated if the account balance is below our
margin requirement, which is 50 %.
The net asset value is equal to your balance plus your unrealized P / L from all open
positions calculated using the current bid or ask rates Regulatory
Margin Requirement: The minimum margin required by the regulator for the instr
Margin Requirement: The minimum
margin required by the regulator for the instr
margin required by the regulator for the instrument.
Your
margin used is position size x Margin Requirement = 10,000 EUR x 5 % = 50
margin used is
position size x
Margin Requirement = 10,000 EUR x 5 % = 50
Margin Requirement = 10,000 EUR x 5 % = 500 EUR.
You only need make sure to have enough balance to open
positions of sizes you are comfortable with including
margin requirements.
So the trick is for the trader to take
positions and determine lot sizes based on the volatility of the commodity and not necessarily the
margin requirement, which is mostly done.
The minimum
margin requirement for futures
positions held overnight will be automatically transferred to your E * TRADE futures account, including commission and fees, and any deficiency funds required to satisfy
margin calls.
To resolve a
margin call, you can deposit more funds into your account, or close out (liquidate) some
positions in order to reduce your
margin requirements.
If trading is unavailable for certain open
positions at the time of the
margin closeout, those
positions will remain open and the OANDA platform will continue to monitor your
margin requirements.
Before shorting, I would suggest one carefully re-read all the sections in one's brokerage agreement about shorting,
margin requirements, etc, before taking a short
position, and even then considering the use of options to limit one's downside risk.
Margin requirements are waived or reduced in some cases for hedgers who have physical ownership of the covered commodity or spread traders who have offsetting contracts balancing the
position.
MARGIN CALLS AND LIQUIDATION OF POSITIONS Initial margin for new positions and maintenance margin for existing positions must be maintained in accordance with Authorized RFED's requirements, which may be adjusted from time to time without prior n
MARGIN CALLS AND LIQUIDATION OF
POSITIONS Initial margin for new positions and maintenance margin for existing positions must be maintained in accordance with Authorized RFED's requirements, which may be adjusted from time to time without prio
POSITIONS Initial
margin for new positions and maintenance margin for existing positions must be maintained in accordance with Authorized RFED's requirements, which may be adjusted from time to time without prior n
margin for new
positions and maintenance margin for existing positions must be maintained in accordance with Authorized RFED's requirements, which may be adjusted from time to time without prio
positions and maintenance
margin for existing positions must be maintained in accordance with Authorized RFED's requirements, which may be adjusted from time to time without prior n
margin for existing
positions must be maintained in accordance with Authorized RFED's requirements, which may be adjusted from time to time without prio
positions must be maintained in accordance with Authorized RFED's
requirements, which may be adjusted from time to time without prior notice.
MARGIN CALLS AND LIQUIDATION OF POSITIONS Initial margin for new positions and maintenance margin for existing positions must be maintained in accordance with Carrying Broker's requirements, which may be adjusted from time to time without prior n
MARGIN CALLS AND LIQUIDATION OF
POSITIONS Initial margin for new positions and maintenance margin for existing positions must be maintained in accordance with Carrying Broker's requirements, which may be adjusted from time to time without prio
POSITIONS Initial
margin for new positions and maintenance margin for existing positions must be maintained in accordance with Carrying Broker's requirements, which may be adjusted from time to time without prior n
margin for new
positions and maintenance margin for existing positions must be maintained in accordance with Carrying Broker's requirements, which may be adjusted from time to time without prio
positions and maintenance
margin for existing positions must be maintained in accordance with Carrying Broker's requirements, which may be adjusted from time to time without prior n
margin for existing
positions must be maintained in accordance with Carrying Broker's requirements, which may be adjusted from time to time without prio
positions must be maintained in accordance with Carrying Broker's
requirements, which may be adjusted from time to time without prior notice.
Margin requirements will be raised to 100 % of the
position value for equities (both current
positions and order vetting)
Accounts that start the day with less than $ 2,000 net liquidating value (NLV)-- the account value if you were to liquidate all
positions in your account — will be unable to place any new opening spreads or enact any trade in a symbol that increases existing
margin requirements.
Initial
margin requirement on long stock (50 % of long stock
position).
Furthermore, traders need to keep close track of their
margin requirements for open forex
positions since many retail forex brokers will simply close out losing
positions when a situation arises where the
margin in the trading account has been used up due to adverse market movements.