If you get a margin call from your futures broker, don't throw in the towel....adjust!
Margin calls happen to the best of them, but there are ways to alleviate margin deficits without adding money to the account or liquidating positions. In this class, commodity broker Carley Garner of DeCarley Trading discusses the nature of margin and margin calls while offering detailed strategies of using long and short calls and puts to reduce margin in a trading account. Topics covered include:
- What is margin?
- Who sets margin?
- Why is margin necessary?
- How many days do you have to meet a margin call?
- Initial margin vs. maintenance margin
- Day trading margin vs. overnight margin
- Buying calls and selling puts to reduce margin required for short futures
- Selling calls and buying puts to mitigate the exchange required margin for long futures contracts