Brokers Margin adjustment
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Thread: Brokers Margin adjustment

  1. #1
    Why do most brokers increase their margin, is it great for traders?

  2. #2
    Quote Originally Posted by ;
    Why do many brokers increase their margin, can it be great for traders?
    What is great for brokers is generally not for traders ... and vice versa!

  3. #3
    Quote Originally Posted by ;
    quote What is good for brokers is generally not for traders ... and vice versa!
    I totally agree with Ferru... one exception for that rule is true stp/ecn brokers. . They want their customers win. .

    Kindest Regards

  4. #4
    Quote Originally Posted by ;
    Why do most brokers raise their margin, is it good for traders?
    They raise their margin when some large uncertain event is about to occur or there's high market volatility. For instance passed US elections, Brexit, etc..
    The motives for this is prevent liquidity shortage risks, as some trades made by their clients are hedged by brokers using various other counterparties. Excessive leverage and liquidity may produce situation where the losses out of your trade exceed your capital and the broker will begin owe its counterparty.
    Lecture: do not trade using high leverage!

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