CME changes margin req to INITIAL = MAINTENANCE !?!?!?

Discussion in 'Trading' started by DisciplinedHedg, Nov 4, 2011.

  1. KageRyu


    So do we expect a massive drop as brokerages liquidate positions?
  2. Probably has to do with the forced liquidations anticipated on Monday from the transferred MF Global accounts .
  3. This issue needs to be clarified...

    All I know is that increasing margin under duress can't be good for those markets.

    Maybe this will be withdrawn before Sunday open...or won't affect most markets...needs clarification.
  4. KageRyu


    Does this usually happen whenever a major investment bank fails?
  5. trendy


  6. No effect on day trading futures?

    Wrong. Brokerages (ie. IB) can auto-liquidate you intraday anytime you don't meet margin requirements. They don't have to wait until settlement.
  7. trendy


    You just don't get it. The initial margin is not changing. Its only the maintenance margin, which only applies to the end of day settlement price of the contract. If you are not holding a position at the end of day, then maintenance margin, whatever it may be is irrelevant.
  8. thirst


    The OP didn't ask about daytrading margin. He, like me, is wondering how this would affect the overall market. If changes to the maintenance require would cause additional forced liquidation, which again has nothing to do with daytrading or daytrading margins.
    #10     Nov 4, 2011