Pros & Cons in using Auto Liquidation
- Thread starter heispark
- Start date
Robert Morse
Sponsor
Are You willing to give up control of your account to have the ability to have extreme leverage and/or not pay attention to your losses? I don’t want either.
What are the terms? Is it something stupid like if your NLV drops 10% you're out of the position?
I like my broker sending market orders on my behalf in mass liquidation events.
If my open positions lose 50% of equity, Rithmic will liquidate them. My problem is AMP Futures doesn't provide margin discount to /NG day trading anymore. They say that's because /NG has high volatility. They used to provde 4:1 leverage like /CL. Advantage Futures would provide 3:1 leverage if I agree auto liquidation. That sounds reasonable to me.
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Yes, in most cases auto liquidation won't harm I guess. However, when I trade spread (especially illiquid far away month contracts), a bad tick can inadvertently liquidate my postions. It happened 3 times with AMP Futures. I think Advantage would be different as they know how to handle spread trading.....
lol. Comedian post of 2024. Happy New Year!