Cost of carrying futures
- Thread starter cutetrader
- Start date
I believe the $5.2K figure was hypothetical. The current IB margin requirements for the ES are:
Intraday initial: $3443.75
Intraday maintenance: $2375
Overnight initial: $6887.50
Overnight maintenance: $4750
As others noted, the term "cost of carry" that you used in the subject has nothing to do with the margin requirements.
I am sorry for confusing with Cost to Carry
I saw this on IB website and needed more info on that so asked you all
https://www.interactivebrokers.com/en/index.php?f=commission&p=futures2
Robert Morse
Sponsor
OK, now I know what you are talking about. On the IB tiered futures rate, that if for day trading. If you hold overnight positions, they charge you a fee for each day you carry it. We don't do that and most other FCM do not either.
Carrying charges are applied for each net futures contract, net short call futures options, or net short put futures options on a single underlying for each business day the net futures position is held overnight. The carrying fee for accounts with excess equity in between the minimum requirement and 3x the minimum will have their carry fees extrapolated based on the table above.
Robert Morse
Sponsor
The reality is that FCMs love day-traders. They have less risk and require no cap charge. Overnight positions require more monitoring, higher risk and your margin requirement must be meet by their capital to the tune of 8%. Eg. If your margin overnight is $100,000, they have to set aside $8000 of their capital.
This is their way of charging for that. Most FCM don't do that.
This is their way of charging for that. Most FCM don't do that.
Okay. Yeah, now you can disregard all the answers posted so far, because everyone was referring to something entirely different.
Last edited:
Robert Morse
Sponsor
The contract does not matter.
Yeah, I believe these are only applicable to the FX contracts.