Eth Future: Margins for Short is 2x Margin for Long

[marriot1234]

I am probably missing something.
Eth future is quoting 4732.
236.700 USD Value.
Margin for going 1 contract Long : 148.000 Usd
Margin for Short 1 contract : 300.000 Usd

 

[d08]

Short margins are regularly higher than longs.

 

[jys78]

It can only go down to zero, while it can go up infinitely.

 

[Overnight]

I am probably missing something.
Eth future is quoting 4732.
236.700 USD Value.
Margin for going 1 contract Long : 148.000 Usd
Margin for Short 1 contract : 300.000 Usd

Is that a CME product? If so, that is the broker adding on those requirements. The CME does not have different performance bond requirements based on position direction. Unless that is a new bit introduced with ETH futures?

I don't follow the crypto futures space, so am not sure.

 

[virtusa]

It can only go down to zero, while it can go up infinitely.

If it would go down to zero, the loss would be 237,700USD. So why then ask 300,000 USD margin?

 

[jys78]

If it would go down to zero, the loss would be 237,700USD. So why then ask 300,000 USD margin?

Maybe they contemplate it trading below zero.

 

[Overnight]

Maybe they contemplate it trading below zero.

Looked it up, yeah, CME has them. But wow, they give you a serious discount on intra-calendars. Here's the outrights...

And the spreads...

If the ETH future gains traction, you can expect a micro ETH in the future.