Yep. They did it. Raised margins from $500 to 50% ($2250) http://www.openecry.com/traderstoolbox/margins.cfm
Where are all the geniuses screaming how "dumb" IB was raising margin requirements and how must better "risk management" OpenECry must have if they just required $500 per contract. ROFL.
Very true. IB only doubled the margin. OEC quadrupled it. But let's see who relaxes it sooner. Vix will scale back very quickly from here.
from $500 to $2250 is a 50% increase? Hmm. do yourself a favor and have someone check your account each day before u trade. You'll thank me later.
Speaks volumes about the clientele that they have. There is nothing like seasonal traders who need this kind of "protection".
I heard they needed extra cartons of Malloxx for the mgmt team over there Monday night. $500? Even a boiler room has more respect for $ than that.
I would rather have higher margins and know the firm will not go under as the result of other traders levering up too much than have them too low. I had an account at velocity back when they had trouble in August. It's easy enough to lose money trading, I don't need my futures firm to do it for me!
That's not true at all. I've been trading for a number of years full-time now and I am with OEC. I do not WANT high margins B/C I DO NOT NEED THEM. What's the point of having cash sitting there earning nothing? So, I would argue that seasoned traders are the ones that benefit the MOST from low margins b/c they do not NEED that cushion... Again, $500 margins are fine when used properly. Yes, some will abuse those margins and OEC has taken the stance to adjust them TEMPORARILY. High margins does not equate with a better firm. There was a good thread here on ET at one point talking about how much 'margin' is needed in a futures account for an experienced trader when it's earning nothing sitting there. =================== Allow me to elaborate: With $500 margins, I can have what I need in the accounts I trade and that's it. I do not have excess cash sitting there doing nothing. Since the money earns ZERO just sitting there, I do not NEED or WANT that extra 'cushion'. Now, the overleveraged accounts trading 2 contracts on a $1000 account SHOULD be restricted to higher margins. So, it's quite the contrary to the above posts - low margins are VERY attractive for an experienced trader that does not want money tied up into an account that is not necessary to be there. Having money sitting there earning zero is just plain stupid if you do not NEED it there. If you cannot extract regular profits from the markets, then you will need the extra cushions to cover your losses. I'd much rather take that excess cash and at least earn something at the bank, tax free bond, etc.
Any decent firm will shut off your account before allowing it to go into a deficit. I have yet to see a firm that does not at least have an 'oh shit' shut off valve for all accounts. Most will allow you to set that level as well.
And lets not forget... While OEC did raise INTRADAY margins to a (whopping!) 50% of the exchange minimum overnight margin amount, IB ELIMINATED INTRADAY MARGIN! As someone else mused, let's see whos first to repeal, and by how much. As a trading business myself, it's clear which firm is more interested in MY business. With an appropriate balance of augmented risk managment. Osorico