Futures margin question

Think of it this way, your performance bond is held by oec during regular market hours. At the 3:15 pm closing the clearinghouse matches trades and determines open equitiy positions for all the clearing fcms. These fcm's then credit and debit respective customers balances and transfers or recieves net funds from the clearinghouse. All trades must be matched and settled at the end of the day per the clearinghouse. This is why even if you sell your position at 3:31 cst upon opening and you are under the performance bond requirements you will recieve a margin call and not be allowed to trade the next day or until you have adequete capital as that bond is posted against the previous day's trades.
 
Quote from 1a2b3cppp:

Here's why I ask:

I buy 1 contract and it says I'm using $2,750 of my buying power??? Shouldn't it only be $500?

This is during normal trading hours I just did it right now.
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I had the same problem with Tradestation, until I called them, and they enabled my account for daytrade margins. Incidentally, they had an additional proviso that a hard stop was necessary (within 7 pts) in order to qualify for the day rate.
 
whoa guys wtf is going on here while I am short 8 contracts???

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The buying power in the display is calculated based on overnight margins. It doesn't restrict you during the day. You'll find that you can trade much more than 8 contracts, irrespective of how much buying power the program says you have. Try it on sim.
 
Quote from mr888:

If the contract is electronic, then day time margins apply for most of the day, so you can hold 20x$500 contracts, but this is not advisable because a price movement against you and you will face a margin call.
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I know people who leverage their accounts all the way. Some are inexperienced and blow their accounts. Some use systemized stops and profit targets, and are successful. Depends on the skill level and market behavior.
 
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