NexusFi: Find Your Edge


Home Menu

 





Margin requirement changes


Discussion in Brokers

Updated
      Top Posters
    1. looks_one ron99 with 5 posts (0 thanks)
    2. looks_two Big Mike with 4 posts (1 thanks)
    3. looks_3 cpi65 with 2 posts (0 thanks)
    4. looks_4 GridKing with 2 posts (0 thanks)
      Best Posters
    1. looks_one Dale Box with 2 thanks per post
    2. looks_two Jura with 1 thanks per post
    3. looks_3 RM99 with 0.5 thanks per post
    4. looks_4 Big Mike with 0.3 thanks per post
    1. trending_up 8,603 views
    2. thumb_up 5 thanks given
    3. group 3 followers
    1. forum 20 posts
    2. attach_file 1 attachments




 
Search this Thread

Margin requirement changes

  #1 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,321 since Jun 2009
Thanks Given: 33,142
Thanks Received: 101,476

There seems to be a pattern recently with margin requirements.

We've seen some pretty big increases, and then InteractiveBrokers completely did away with intraday day trading margins...

Today, ICE doubled the Russell margins...

My guess is CME is next for another round of margin increases.

Just wondering if any brokers care to comment about what this is doing to the retail businesses...

@Dale Box, @mattz, @BrianConnorCTS, @ApexFutures

?

Mike

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
NexusFi Journal Challenge - April 2024
Feedback and Announcements
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Request for MACD with option to use different MAs for fa …
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Retail Trading As An Industry
62 thanks
NexusFi site changelog and issues/problem reporting
47 thanks
Battlestations: Show us your trading desks!
35 thanks
GFIs1 1 DAX trade per day journal
32 thanks
What percentage per day is possible? [Poll]
31 thanks

  #3 (permalink)
 
kbit's Avatar
 kbit 
Aurora, Il USA
 
Experience: Advanced
Platform: TradeStation
Trading: futures
Posts: 5,854 since Nov 2010
Thanks Given: 3,295
Thanks Received: 3,364


Swell (sarcastic swell that is).... pricing out the little guy. mine hasn't changed yet but see what happens tomorrow

Reply With Quote
  #4 (permalink)
 Dale Box 
Houston Texas USA
 
Experience: Advanced
Platform: X_TRADER
Posts: 63 since Sep 2010
Thanks Given: 24
Thanks Received: 44

Hi Mike and futures.io (formerly BMT),

Traders are definitely holding less overnights

The Russell is far less liquid than the ES so I can understand why ICE did that.

Here is the latest from the CME -

https://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-279.pdf

I actually prefer the higher margins since too much leverage is often the reason most traders fail. An FCM has the right to set any intraday rate they wish so this doesn't have much of an effect on me. So far I have decided not to raise our current intraday rates.

Best regards,

Dale

If you have any questions about our services at Velocity Futures please send me a private message.
Reply With Quote
The following 2 users say Thank You to Dale Box for this post:
  #5 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,321 since Jun 2009
Thanks Given: 33,142
Thanks Received: 101,476

Some speculate the move is less about volatility and more about pushing retail traders out of overnight positions. Holding overnight (buy the close, sell the open) in a trending market is far more profitable than buying the open and selling the close.

Mike

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #6 (permalink)
 cpi65 
UK
 
Experience: None
Platform: -
Posts: 154 since Aug 2010
Thanks Given: 12
Thanks Received: 75

I don't think this is "pricing out the little guy", it's partly to squeeze out excessive speculation, and partly to save the little guy from blowing his account!

Reply With Quote
  #7 (permalink)
 
Big Mike's Avatar
 Big Mike 
Manta, Ecuador
Site Administrator
Developer
Swing Trader
 
Experience: Advanced
Platform: Custom solution
Broker: IBKR
Trading: Stocks & Futures
Frequency: Every few days
Duration: Weeks
Posts: 50,321 since Jun 2009
Thanks Given: 33,142
Thanks Received: 101,476


cpi65 View Post
I don't think this is "pricing out the little guy", it's partly to squeeze out excessive speculation, and partly to save the little guy from blowing his account!

CME working to protect the little guy???



Sure I can see the FCM or IB raising margins to actually protect the small trader, but not sure CME is doing it for the same reason.

Mike

We're here to help: just ask the community or contact our Help Desk

Quick Links: Change your Username or Register as a Vendor
Searching for trading reviews? Review this list
Lifetime Elite Membership: Sign-up for only $149 USD
Exclusive money saving offers from our Site Sponsors: Browse Offers
Report problems with the site: Using the NexusFi changelog thread
Follow me on Twitter Visit my NexusFi Trade Journal Started this thread Reply With Quote
  #8 (permalink)
 cpi65 
UK
 
Experience: None
Platform: -
Posts: 154 since Aug 2010
Thanks Given: 12
Thanks Received: 75

I didn't mean by design... and, to be honest, overnight margins are ridiculously low as it is imho. Intra day margins are just plain crazy.

Reply With Quote
  #9 (permalink)
 
GridKing's Avatar
 GridKing 
San Diego, CA USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: ES
Posts: 3,630 since May 2011
Thanks Given: 584
Thanks Received: 881

U.S. Commodity Futures Trading Commission


https://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-279.pdf


says the rates will be effective as of close of 8.11.2011

"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
Visit my NexusFi Trade Journal Reply With Quote
  #10 (permalink)
 RM99 
Austin, TX
 
Experience: Advanced
Platform: TradeStation
Trading: Futures
Posts: 839 since Mar 2011
Thanks Given: 124
Thanks Received: 704


Call me a conspiracy theorist...but I think there's a number of reasons that could trigger a margin increase.

Political pressure, second handed pressure from manufacturers who keep getting pinched by higher Gold prices, large movers and shakers like Goldman trying to generate downward pressure in order to enter long positions.....could be any number of things.

Doesn't everyone find it curious that Soros is alumni with the head of S&P, recently dumped non-family capital in order to shroud from the SEC and there was an $850 bet with the downgrade?

Why would any of the exchanges want this? This hurts their bottom line. They're already complaining about the reduction in volume year over year. Hiking the margins hurts their comissions.

I just don't trust that there's any real/ethical motivation or sanity behind these types of decisions. There's always someone who's either pulling the strings or waiting to make a fortune off these events.

"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
Reply With Quote





Last Updated on September 24, 2011


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts