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Moreover, this prevents many medium accounts with FDAX systems that need a meaningful scaling in/out of several contracts from trading. So if one is convinced that his/her system also
works under the current volatility conditions, it's one of the - rare - special situations where it can be better to use CFDs instead of the future even with a medium/high 5-figure or
(lower) 6-figure account.
At the moment, most CFD brokers still can keep their (F)DAX margins constant (make an educated guess, why ).
P.S.: The caveat about volatility is for a reason ... remember the CHF.
I also noticed the margin increase, by always looking everyday in the TWS system what the margin is. You say they announced it, but I can't find anything on there site or how they determine these margin increases. Did you get an email or something from IB, or are you subcribed to something for this sort announcements from IB?
Today they announced new high levels for ONE contract: >31K
The good news is that from today per contract old half overnight prizes
for day margins are used....
Guess, for the future we can count on such increases when circuit breakers are activated (in the US or elsewhere).
The so-called regular margins are calculated by the Eurex, based on a volatility system that is adjusted from time to time.
You can download the Eurex margin calculator at Eurex - Eurex MarginCalculators .
It's also interesting for those who never thought about differences between the Eurex margins and those of their brokers.
Comparing the numbers you get a pretty good impression if your broker spurs on risk, last but not least for small accounts.
A person who concluded that the very low-margin-for-day-trading brokers are simply out to fleece their smaller customers by enticing them in just might be right....
Margins for 1 Dax future @ Dax price of 7K some months ago were intraday around 8K.
Yesterday margin for the same Dax future was >31K...
Even the markets have not moved that much.
Shows again that (some) brokers can shift intraday/overnight margins at their own wish...
AND push margins into the sky.
Has not really to do with actual pricing on THE actual market... just taking profit on volatility:
Means optimizing own cash flow!
A pity - be aware
(same is for derivatives - as IB is concerned)