I trade Futures, but I was checking the new margins on EU CDF brokers. (new ESMA regulations)
For a DOW $1,00 per point contract you need a Margin of +/- $1300,00. Margins raised by 10 times the old margin requirements.
Approx same margin required for other instruments/markets.
This margin has no single relation anymore to the risk.
If you trade very bad and you could loose 2% to 2.5% on the DOW that will be approx. 250p to 350p, which is $250,00 to $350,00.
And now they require a margin of $1300,00 to cover a possible risk.
I think a lot of EU brokers will loose many customers, moving to brokers outside EU with lower margin requirements.
For a DOW $1,00 per point contract you need a Margin of +/- $1300,00. Margins raised by 10 times the old margin requirements.
Approx same margin required for other instruments/markets.
This margin has no single relation anymore to the risk.
If you trade very bad and you could loose 2% to 2.5% on the DOW that will be approx. 250p to 350p, which is $250,00 to $350,00.
And now they require a margin of $1300,00 to cover a possible risk.
I think a lot of EU brokers will loose many customers, moving to brokers outside EU with lower margin requirements.
"It's better to be out wishing to be in... than to be in wishing to be out!
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