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| The exchange raises & lowers margin rates based upon price level & also if speculative activity increases. If markets get really speculative they can make inter-day margin calls on any clearing firm with large net positions. In London markets, the dealers margin the net position..in USA markets the clearing firms must margin both sides, longs & shorts. In the wild period of the 1973-74 bull, clearing members frequently dispatched aircraft to the smaller airports to pick up margin checks as it was before wire transfers became common use. The clearing firms net capital was changing so dramatically they could not rely upon the US mail. | |
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Mulling.
