Futures and Margin....

T

thereuare

If you want to buy contracts which requires a $10,000 initial margin, does this mean you need $10,000 CASH in the account, or do you still get 2:1 margin and therefore really only need $5000 cash.

The above question relates to intraday, and the positions wouldn't be held overnight.

Thanks (still trying to learn).
 
Originally posted by thereuare
If you want to buy contracts which requires a $10,000 initial margin, does this mean you need $10,000 CASH in the account, or do you still get 2:1 margin and therefore really only need $5000 cash.

The above question relates to intraday, and the positions wouldn't be held overnight.

Thanks (still trying to learn).
More...

10K initial margin is the amount to open the position (assuming no daytrading margins). Slightly less than 10K will be required to maintain the position overnight. If your broker offers daytrading margins of 2:1 then you could daytrade with 10K in the acct with 5K required for margins. Daytrading margins are set by the broker, overnight margins are set by the exchanges and the brokers have no latitude over these.
 
I think i'd be trading thru IB (unless somebody here advises against it).

From their website, they offer 50% of SPAN Margin requirements from:
"The earlier of 15 minutes before open outcry hours for a products ends or 3:45 pm EST"

Does this basically mean that i would only need $5000 Cash in the account to trade the above scenario of contracts that required a $10,000 initial margin (assuming i went flat by 3:45 on a normal session trading day)?

Thanks again!
 
Let us know what contract you are talking about specifically, then perhaps some of us can tell you exactly what you need to trade them...Like TriPack said each broker has wide latitude in offering intra-day leverage...IB used to have very high intra-day requirements, but they too succumbed to the pressure and cut those requirements much lower...Also, probably as a result of alot less volatility than in 1999-2000
 
Originally posted by thereuare
I think i'd be trading thru IB (unless somebody here advises against it).

From their website, they offer 50% of SPAN Margin requirements from:
"The earlier of 15 minutes before open outcry hours for a products ends or 3:45 pm EST"

Does this basically mean that i would only need $5000 Cash in the account to trade the above scenario of contracts that required a $10,000 initial margin (assuming i went flat by 3:45 on a normal session trading day)?

Thanks again!
More...


I dont think you want to be trading at IB if you are still learning. Go with a broker who you can talk with.
 
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