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Hans wrote:
> The whole margin discussion is silly - if one does not have 25k or
> more should never bother trading FUTURES anyway - what IAB and
> others do is just to protect THEMSELVES (the broker), OURSELVES
> (the crowd) and the CUSTOMER himself for bancrupty on the first
> Greenspan burp. Whoever allows and takes YOUR last 5k to open a
> futures account should end up in jail !
I agree completely.
However, I prefer to set my risk tolerance level myself, rather than
have the broker tell me what I can or cannot do. I don't want to
have to tie up $5k per mini (of which I may want to trade 5 or more,
if the commissions are low enough, especially given the advantages of
electronic e-mini orders vs. pit slippage) if the exchange says I can
do it with 1/3 that much for a daytrade.
> I think IAB is perfectly ok with 5k for a mini !
They're perfectly welcome to require stiff margins, and I understand
why they do. I just may decide not to do business with them because
of it. (More specifically because of that and the other issues, e.g.
not handling other contracts, etc.)
Gary
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