Conversation

1) Changes to presidential election futures margin requirements! ftx.com/trade/TRUMP The election is soon, so volatility will increase. As such, margin requirements will go up for president2020 contracts.

ftx.com

FTX

Cryptocurrency Derivatives Exchange

SBF

@SBF_FTX

Oct 30, 2020

2) In 24 hours (2020-10-31 8am HKT), we will a) increase initial margin requirement to $0.50, so you need $0.50 to get short 1 TRUMP or $0.36 (the current price of TRUMP) to get long 1 TRUMP b) increase maintenance margin requirement to $0.40 - $0.10 * days until the election

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and

"b) increase maintenance margin requirement" this may cause current positions to be liquidated, which is quite unfair for high leverage users. They may be either partially liquidated or have to expose more risks if they want to insist on their longs or shorts.

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Alas it's necessary: the market will become very volatile by election day and so margin requirements have to go up. This has been disclosed from the beginning:

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I really don’t think it’s necessary for the exchange to force lowering the leverage of current user positions, while it’s necessary for the investors themselves to take this into account before making their strategy and positions.

SBF

@SBF_FTX

Replying to

@dtconan

if the exchange doesn't there might be bankruptcies and clawbacks

8:45 AM · Oct 30, 2020Twitter Web App