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Guy;
Initial margin is absolutely irrelevant for naything related to trading and
results and specially it has absolutely nothing to do with your risk. The
level of margin can be changed by the exchange without notice. It's is a
regulatory consideration, not a trading consideration. If you want to have
money under management this is a question that you will not even be asked.
Nobody cares. What you will be asked is what is your maximum risk: ie when do
you cut your losses? If you cut your losses after you have lost your initial
margin, and if your initial margin is 30% of your capital, your rik of ruin
is 100%. Even if your risk is 3% how are you sure that you you will not go
over that? What about stops during night session?
Jean Jacques
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