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It is my understanding that they are changing the margin because of the
volatility. In many instances in the past margins were changed to force
holders to liquidate. Simple reason, the floor created the futures and
then it is time to get them back cheaper. Remember in futures trading
they can change the rules any time they want. Ira.
Gary Fritz wrote:
> Recently the exchanges boosted the margin requirements for several
> contracts. The S&P went up a bit, but the ND jumped almost 70%, from
> something like $8000 to $13770.
>
> Obviously that can put a dent in your planned trading rate, but it's
> probably a good precaution given the recent craziness in the markets.
> But I'm wondering how long this is likely to last? Will the
> exchanges lower the margins once things calm a bit (whenever THAT
> is), or is this likely to be the status quo until the NEXT time they
> crank 'em up again?
>
> Thanks,
> Gary
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