5625 initial margin

[velma]

I'm interested in trading the ES. Most of the brokers require 5k minimum to open an account.

I'm a little confused on the initial margin requirement. Based on requirements below...

Assuming my balance is 5000.

Am I correct that I could by 3 ES contracts for 1500, but I would get a margin call if they fell 4 points...

5000 - (150*4=600) = 4400, because the maintenance is 4500.

and I could not carry even 1 contract overnight? because the maintenance is 5625.

http://www.tradewithvelocity.com/commissions/chicago-mercantile-exchange.aspx

 

[nazzdack]

Quote from velma:
-----Assuming my balance is 5000.
-----I could by 3 ES contracts for 1500
-----(150*4=600)
-----I could not carry even 1 contract overnight?

1) You're badly undercapitalized.
2) You may be eligible for $500/contract daytrade margin or only a higher figure, i.e. $1,000, $2,000 or $5,000.
3) A 4-point fall is a $200 loss per contract, not $150.
4) Your position size should be 1-lot only and no more.
5) You wouldn't be able to carry overnighters, unless your daytrade margin is in effect somehow.