Margin changes before events: what did your broker do?

FTC Community TeamStaff17 Sept 202698 views

Brokers can raise margin requirements before volatile events, changing the economics of open positions overnight. The notice, the scope and the timing all vary.

Margin changes before events: what did your broker do? — leverage and margin diagram — Leverage: a small margin controlling a larger position

the broker and the event
how much margin changed and when you were told
how it affected your positions

Margin changes before events: what did your broker do? — risk-reward diagram — A risk-reward ratio of 1 to 2

The margin guide explains the mechanics behind the change.

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