Is margin variable according to price, and why? | Traders Hideout


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Is margin variable according to price, and why?

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trendisyourfriend View Post
When you think about it it is normal. It's like making a loan to your bank to buy a house. The higher the price of the house, the higher the cash down will it require.

Okay, so far I have approached margin from the point of view of a speculator, thinking about the futures product in terms of tick increment worth, liquidity and volatility.

Whereas I think you are saying that I should think about the intrinsic value of the asset, right?

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