Why would anyone want to "burn" anything...these are all serious professionals? If I see something like that about to happen, we have a very serious discussion. Don
Never "margin" ..."use of capital" big difference...when using $1mil for opening only orders, for example...you need the $1Mil, but you certainly aren't risking that much...since half of your orders "Cannot" be filled (only one side can)...and most of the orders "Won't" be filled....yet the strategy can provide a good income by "using" capital properly.... And, yes, unless traders violate rules, they are limited to the original cash deposit....that's part fo the risk that we take. Each trader should (and most do) run their trading as a "business" ...much like any other business...no one should over-extend themselves.... All the best.. Don