confused about e-mini margin requirements

B

bora

I have never traded e-minis before, just stocks and option. Now i want to start trading e-mini Nasdaq-100 and e-mini S&P500 futures. But i am confused about the margin requirements.
Looking at CME website i found:
initial margin req NQ: $2,250 and maintenance req. $ 1800.
Does this mean that if i buy one e-mini contract i have to have $2250 in my account besides the e-mini contract value? Could somebody explain this ? And is there a different margin requirement for intraday trading? THanks for the answers.

Bora
 
You have to have the margin specified to open the position (and the maintainance margin available until you keep it open).

Some brokerags offer "day" margins (about 1/2 (?) of the exchange margin).
 
Quote from bora:

I have never traded e-minis before, just stocks and option. Now i want to start trading e-mini Nasdaq-100 and e-mini S&P500 futures. But i am confused about the margin requirements.
Looking at CME website i found:
initial margin req NQ: $2,250 and maintenance req. $ 1800.
Does this mean that if i buy one e-mini contract i have to have $2250 in my account besides the e-mini contract value? Could somebody explain this ? And is there a different margin requirement for intraday trading? THanks for the answers.

Bora
More...

"Initial" margin required to open a position. "Maintenance" margin required to be maintained at all times. If the equity in your contract falls below the maintenance margin level, someone at your brokerage should notify you for immediate action... add more money or liquidate the position. 24 hrs response usually required if you're adding money. Liquidation by the end of the day if you're not adding.

FWIW... If you're struggling just to scrape together enough trading capital for one contract, suggest you trade something else until you build up your equity... like QQQ or SPY. :cool:
 
What amount of money would you suggest to have in your account for 1 contract (daytrading) to feel safe? $5000? more?
 
Quote from bora:

What amount of money would you suggest to have in your account for 1 contract (daytrading) to feel safe? $5000? more?
More...

Here's a simple formula:

Subtract from 24 the number of months' experience you have daytrading the e-minis, and multiply by $1,000.00 :D
 
Quote from bora:

What amount of money would you suggest to have in your account for 1 contract (daytrading) to feel safe? $5000? more?
More...
figure what stops you are going to use. And make that 2% of tatoal equity.

On es, a 2 pt stop would be $100 per contract so that's $5000 per contract.

If you use 4 pt stops, then you need 10k per contract.

and then I don't know I forget nq, don't trade it.

Rule of thumb. Just a place to start. Generally, you want to allow enough to endure a 50% drawdown.

There is no safe amount. Even if you have all the money in the world. No such thing as safe trading.
 
Quote from bora:

Looking at CME website i found:
initial margin req NQ: $2,250 and maintenance req. $ 1800.
Does this mean that if i buy one e-mini contract i have to have $2250 in my account besides the e-mini contract value? Could somebody explain this ? And is there a different margin requirement for intraday trading? THanks for the answers.

Bora
More...

the number above is for holding overnight for each contract, for intraday trading, it is much lower.
 
Quote from profitseer:

figure what stops you are going to use. And make that 2% of tatoal equity.

On es, a 2 pt stop would be $100 per contract so that's $5000 per contract.

If you use 4 pt stops, then you need 10k per contract.
More...


Profitseer,

I have found that in SSF's the downpayment for each contract is 20%. If this is true, is it the same with NQ and ES futures?

Or 20K $ for NQ and 40K $ for ES (based on current prices) is necessarly to have on hand?


Lojze
 
Plum...,

and what are the NQ and ES tickers when trading with IB?

Also, which are SSF futures tickers available at IB?


Lojze
 
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