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Ninja Raises Margins Indefinitely

  #4 (permalink)

Reno, Nevada
Trading Experience: Advanced
Platform: NinjaTrader
Favorite Futures: ZN, ZB, CL
phantomtrader's Avatar
Posts: 233 since May 2011
Thanks: 54 given, 387 received

xplorer View Post
I think it's sensible. Raising the margin requirements means essentially reducing leveraging.

I remember back in Jan 2015 when the SNB removed the floor on EURCHF a lot of people suffered shock losses. Some brokers went bust and some customers lost everything. There were calls to increase margins.

Probably NinjaTrader are acting out of caution in what are volatile markets and uncertain times, I can't blame them.

If the market crashes and the breakers don't work, then everyone gets hit. I can see putting in a mandatory stop, but again, in a blowout nothing is guaranteed. Three times the margin only means that YOU, the trader, has increased your maximum risk. If you blew your margin at $500 per lot, then you wouldn't be able to trade until you increased your account balance. Now, they're happy to wait until you blow out at $1,500 per contract. I don't see how increasing margins protects anyone. Events like BREXIT don't occur that often - skilled traders will probably do very well in this environment. Scalping the 30 yr this morning was a breeze - bit the bullet and lived with the 3x margin requirement.

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