How to ramp up quickly? Trading 1000 lots with $100k margin

tiddlywinks said:
Margin is not the account value. Using your example numbers, you need $1500 to initiate 1 contract of ES. Once initiated, your margin requirement to continue that position drops to $1 Margin in not the account value.
More...

Pardon? Even the most liberal brokers will be looking at $300/contract equity as a value to initiate "automatic liquidation" to protect both the stupid customer as well as the firm's capital account.
 
Scataphagos said:
Doubt you realize. A 1000 contract position has a notional value of "140 $Million" currently. And you want to (1) risk your capital on that kind of leverage, and (2) find a broker who will "stand for your losses with the hope of making a few $$ commish on your trades when you have only $100K equity to back your play? Can hardly imagine anything more stupid/idiodic.
More...

Point out where I advocated being a cowboy.

Now skedaddle.... scat! get outta here!
 
pinetboltz said:
technically that's true though, isn't it - as long as ES notional value on that 1 contract doesn't go down by more than $1499, ie. such that you don't need to post additional maintenance margin.
More...

For me margin is the TOTAL FINANCIAL ENGAGEMENT from the trader, no matter how it is called. You can lose $1,500 per lot, no matter what the "margin" is, because that's the amount in your account and that's the amount the broker will take in case of a wipe out. You can also not "ramp up quickly" as you will need to fund not only the margin, but the account value will have to grow too. If not the broker will refuse trading more lots. So you leverage will be decreasing.
 
Scataphagos said:
Pardon? Even the most liberal brokers will be looking at $300/contract equity as a value to initiate "automatic liquidation" to protect both the stupid customer as well as the firm's capital account.
More...


You can't read... my response to that post clearly stated "using your example numbers".


And Im certain the nominal and notional value of margins etc were quite different in the 1970's versus today. hmmm... I mentioned that in my original post.
 
tiddlywinks said:
Margin is not the account value. Using your example numbers, you need $1500 to initiate 1 contract of ES. Once initiated, your margin requirement to continue that position drops to $1. Margin is not the account value.
More...

Your account size should be $1,500 per lot. That's the real margin. If you don't put up $1,500 you will not trade even 1 lot as the broker will refuse. So the total engagement per lot is what counts.
Margin is the amount of money your broker wants as guarantee. In my example it is $1,500. So if you don't put up $1,500 per lot you are not going to trade. So your $1 or $100 "margin" is not realistic.
 
schweiz said:
For me margin is the TOTAL FINANCIAL ENGAGEMENT from the trader, no matter how it is called. You can lose $1,500 per lot, no matter what the "margin" is, because that's the amount in your account and that's the amount the broker will take in case of a wipe out. You can also not "ramp up quickly" as you will need to fund not only the margin, but the account value will have to grow too. If not the broker will refuse trading more lots. So you leverage will be decreasing.
More...


I understand, agree, and also operate with this viewpoint. But margin and account value are separate things.
 
well ok, usually initial margin is like 110%-130% or so of maintenance margin

so in this case, if the maintenance margin is $1, then initial margin is prob. $1.10-$1.30

or to use the other set of figures, if initial margin is $1500 per contract (actually pretty close to TradeStation's day trading rate on the ES), then maintenance would likely be around $1350
 
That would be a couple of decimal points away from rational lot size given 100k equity. If you want to trade big, continue to build equity from earnings and increase size incrementally.
 
You must log in or register to reply here.
Back
Top