Comment on Margin required for trading currency going up - July 9, 2013

Nithin Kamath commented on 21 Oct 2013, 06:53 AM

Narayan,

When following a risk management system we have to go by the risk that can occur once in 100 days rather than based on daily average movements.

We are conservative in terms of leverage because usually it is this that can cause problems to brokerages in the longer term.

Leverage is like WMD(weapons of mass destruction) and usually is responsible to kill trader, brokerages and every possible business.

Cheers,

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