Some brokers/CFMs allow futures daytrades on accounts without enough cash for margin?

Discussion in 'Index Futures' started by crgarcia, Aug 26, 2008.

  1. Isn't this illegal?
    Exchanges set minimum margins, even for daytrades.

    And dangerous?
    MF Global rogue trader blew up because of this.

    Couldn't they get sued or fined for ignoring margins?
  2. Exchanges set margins for overnight only. Exchanges have rules about very large intraday market moves that require that more cash be put up to support existing positions during the day, but I have no idea the last time this happened.