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The CME Margin Notice That Has Everyone In a Tizzy

 
Anonymous Coward
User ID: 1442294
United States
11/05/2011 01:24 PM
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The CME Margin Notice That Has Everyone In a Tizzy
It looks like they're lowering the initial margin requirement not raising the maintenance margin, and like this link says, it's probably for the MF Global clients, but it is still a risky move.
[link to kiddynamitesworld.com]
Anonymous Coward
User ID: 3568592
United States
11/05/2011 01:44 PM
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Re: The CME Margin Notice That Has Everyone In a Tizzy
I want to hear some repleys to this post from Financialtards!

Those of us who don't understand this crap want to know what's going on.
Anonymous Coward (OP)
User ID: 1442294
United States
11/05/2011 01:52 PM
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Re: The CME Margin Notice That Has Everyone In a Tizzy
A margin account allows you to control a larger amount of a particular security with a smaller intitial deposit. For example in the foreign exchange market most brokers offer 50:1 leverage meaning you can control $25,000 with only $500. The maintanence margin is the minimum amount that has to be in your account or else they'll automatically liquidate your position if you're in one.

Earlier people thought they were jacking up the maintanence margin but now it looks like they're reducing the initial margin requirement.
Anonymous Coward
User ID: 4108339
United States
11/05/2011 01:56 PM
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Re: The CME Margin Notice That Has Everyone In a Tizzy
I heard this is really nothing
Anonymous Coward
User ID: 1315838
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11/05/2011 01:57 PM
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Re: The CME Margin Notice That Has Everyone In a Tizzy
Does anyone find it odd that "no-one" knows how to figure the implications of this notice out. "NO-ONE"
Then from the link the OPie provided it says that the CME is refering people to that blog for an explanation through a tweet ? With no clarification from the CME itself ?

The whole financial system is in turmoil. !
AuthorAuthor

User ID: 4699137
Poland
11/05/2011 04:38 PM
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Re: The CME Margin Notice That Has Everyone In a Tizzy
It looks like they're lowering the initial margin requirement not raising the maintenance margin, and like this link says, it's probably for the MF Global clients, but it is still a risky move.
[link to kiddynamitesworld.com]
 Quoting: Anonymous Coward 1442294


Well, dang, that puts the entire episode in a whole new light.

Drinks for everyone! To da moon!
Seymour Brenner's, MD, FACR, opinion regarding Dr. Emanuel Revici: "As a Diplomate of Radiology, I have reviewed many cases of incurable cancer that Revici has cured."





GLP