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I ignore their margin and use my own calculated with SPAN and allowing for their increased margin on some commodities.
As stated in the emails I received from OX, they will overule the computer limiting trading. BUT you have to talk to the right person or else you will get the run around from them.
But most of the time I am not close enough to a margin call for this to be a problem.
Ron, This is freaking me out. I can't believe that for the last few years I have been trading believing the marging requirement listed in the OX account balances and trade calculator. THIS HAS TO BE A SERIOUS IF NOT FRAUDUALENT and MISLEADING ACT ON THEIR BEHALF. Or it certainly would be in Australia.
Ron would you please do me a big favour and let me know what the margin should be on the following CL strangle please.
Ron has previously mentioned a workaround for this.
If you subtract the Tradecalc margin value for one spread from the Tradecalc value for two spreads this will give the real value per spread. So in this case $1,367.52 - $1,112.76 = $254.76 per spread. So that would be $25,334.00 for the 100 spreads in your example.
When you enter these orders, do you leg in, or enter it as one order? I've tried a couple of times as one order, and find it really tough to get a fill (this was in Gold, though). Seems like legging in would be easier, although maybe it is because I'd end up giving up a bit on the price.
This seems like a very workable exit strategy. The only question I have is that with this exit the loss that might be taken seems to be fairly large compared to the max gain that could be made for the position. Is this exit strategy positioned to increase the probability that the position will result in success? Is this the best choice of
"wiggle room "to allow the underlying to move and result in the higher probability of gain?