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ETrade Bans Margin Trading on Volatility ETF as Swings Increase

TedTed
in The Bullpen
FYI: Investors at E-Trade can no longer bet on a volatility ETF with borrowed money.

Customers of the online brokerage received notices that the margin requirement for trading the iPath S&P 500 VIX Short-Term Futures exchange-traded note (ticker VXX) increased to 100 percent from 60 percent, essentially meaning they have to use their own cash. That could mean margin calls for accounts that had borrowed money invested in the fund
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-02-06/etrade-bans-margin-trading-on-volatility-etf-as-swings-increase?srnd=etfcenter
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