Interesting, so daytrading margin with IB will be around 5500. 15 percent is HIGH---unless it must move like a wild animal. I though margin was like 3k or so. They are clearly not using anything resembling SPAN. I am guessing the options are done with the same margin system? This is the most expensive margining I have seen in Asia. The Hang Seng is cheap to trade and the Nikkei is dirt cheap.
"They are clearly not using anything resembling SPAN." They do. KOSPI futures and options are margined by TIMS. It is a risk-based system pretty similar to SPAN. High 15% margin is a result of high volatility. Maintenance margin is 10%. Margin offsets will be very good.
Ok -- BUT the VOL has to BE SICK if it is margined by span. Good then ---the thing really moves. Some exchanges radically over margin (like CME) for stock indexes. CME has the margins for stock indexes to high. Spoo and Naz should be alot lower according to SPAN. Look at the margin for the Russell 1000 on Eurex US and you will see what the S&P margins should be (1300).
What's the difference of margin system SPAN and TIMS? Do they effect the margin amount ? Anyway, USD5,500 initial margin (for intraday trading ) is still very high, which makes the capital less efficient, even though the market moves drastically. Can this initial margin be further reduced ? About USD3000 is ideal, just as other index futures in Asia.
Trade options. Their value is 1/5 of futures and margin is lower. Liquidity is not a problem. The difference between SPAN and TIMS is negligible in this context.
How did you get that chart? Do you subscribe to risklatte.com? and if so how much does it cost? thanks
Awash, do you use EZ futures ? I recognized their logo on the window screen. How do you like their service and their software ? Thanks Marsupilami