I'm a regular trader in commodities.
Normally, the SPAN margin for commodities is 5% across the board (ofcourse, with few exceptions).
Nowadays, I've heard many brokerage houses are offering commodity a/c with 2-4 times extra exposure.
All I want to know is, how is the extra exposure given.
I mean is extra exposure given, by way of reduction in SPAN margin OR is it given in the form of extra lots/positions.
Help appreciated.
Normally, the SPAN margin for commodities is 5% across the board (ofcourse, with few exceptions).
Nowadays, I've heard many brokerage houses are offering commodity a/c with 2-4 times extra exposure.
All I want to know is, how is the extra exposure given.
I mean is extra exposure given, by way of reduction in SPAN margin OR is it given in the form of extra lots/positions.
Help appreciated.