Adjusting Margin and Risk: Tips and Tricks to Reduce Margin Requirements and Alleviate Margin Calls
Use futures and options to reduce margin requirements and alleviate margin calls--without liquidating holdings or adding funds to your trading account!
Margin calls are the necessary evil of trading leveraged instruments. Without margin, speculators would be subject to substantial default risk in addition to the risk of market losses. Unfortunately, many traders allow the fear of a margin call to drive their strategy. Margin calls don’t have to be a horrifying experience. There are tactics you can use to avoid them--or avoid scrambling to meet them.