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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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?

Nope, not intrinsic value (whoever knows that ), only nominal value, i.e. point x index.

Staying with @trendisyourfriend 's example: Nominal value is the price of your house, of which you are making
a fractional down payment (your margin) in order to cover the risks (liquidity, volatility, rate changes, etc.).


Last edited by choke35; June 17th, 2017 at 03:30 PM.
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