Intraday Futures Spreads margin requirement

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vincentvega

I'm usually an options trader, so pardon me for my stupid question ---

How does one get a margin discount for trading spreads on bonds or indexes intraday? I understand CME lowers their margin requirements when carrying past the close. To trade a futures spread, is it possible to trade another cme symbol with lower requirements?

Thanks for the assistance. :)
 
Quote from vincentvega:

I'm usually an options trader, so pardon me for my stupid question ---

How does one get a margin discount for trading spreads on bonds or indexes intraday? I understand CME lowers their margin requirements when carrying past the close. To trade a futures spread, is it possible to trade another cme symbol with lower requirements?

Thanks for the assistance. :)
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the broker sets the margin, but most good brokers go with what they call "exchange minimum" so whatever the minimum required by the CME will also be the minimum required by your broker.

It is all on the computer now, you don't need to ask for it. If you are long outright, you will have one margin requirement, if you are spread, it will automatically go down.
 
Quote from vincentvega:

I'm usually an options trader, so pardon me for my stupid question ---

How does one get a margin discount for trading spreads on bonds or indexes intraday? I understand CME lowers their margin requirements when carrying past the close. To trade a futures spread, is it possible to trade another cme symbol with lower requirements?

Thanks for the assistance. :)
More...

Absolutely.

The margins for spreads are much lower.

This applies both intra-day and overnight.

However, some broker platforms will not show the lower margins intraday because they have not programmed it in. In this case, if you talk to your broker's risk department, they will normally give you very low day margins to compensate for that.

Some brokers such as IB do compute the intraday margins correctly at all times. On TWS, if you add another position creating a spread, your required margin will instantaneously drop precipitously. It goes by SPAN margin at all times.

All of this also applies to options.
 
you would get a lot better replies if you explained what it is you are trying to do.

otherwise, no you are wrong, after the close (or actually a little before) the higher overnight margin kicks in.

Generally positions held after the open but before the close get a 50% discount, hence the infatuation of low capitalized day traders.
 
Quote from oldtime:

you would get a lot better replies if you explained what it is you are trying to do.

otherwise, no you are wrong, after the close (or actually a little before) the higher overnight margin kicks in.

Generally positions held after the open but before the close get a 50% discount, hence the infatuation of low capitalized day traders.
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Probably his broker is not re-computing margins during the day. Some do not and do not even recognize spreads when they are creating by legging in one side at a time. I think that that is what he is describing.
 
Quote from comintel:

Probably his broker is not re-computing margins during the day. Some do not and do not even recognize spreads when they are creating by legging in one side at a time. I think that that is what he is describing.
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he isn't even trading real money, he's just asking vauge questions, and out of the goodness of my heart I have tried to be polite (which at times can be very hard for me) and help him, and all he did was ridicule me because I filed as unemployed (he should have it so good) so you try to help him. Sounds like you have more patience than me.
 
Quote from oldtime:

he isn't even trading real money, he's just asking vauge questions, and out of the goodness of my heart I have tried to be polite (which at times can be very hard for me) and help him, and all he did was ridicule me because I filed as unemployed (he should have it so good) so you try to help him. Sounds like you have more patience than me.
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Oh I did not know that background.......
 
Quote from oldtime:

he isn't even trading real money, he's just asking vauge questions, and out of the goodness of my heart I have tried to be polite (which at times can be very hard for me) and help him, and all he did was ridicule me because I filed as unemployed (he should have it so good) so you try to help him. Sounds like you have more patience than me.
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Seriously oldtime, find something else to do. I am happy for your attitude, but you are almost useless on this forum of traders. I try to ask questions to fellow traders but get semi homeless responses. I'm sorry if this is mean, but seriously-go try to make a trading career or do something better besides posting on the form. You're not a trader, what are you doing here? I am, and I'm even taking losses now. You were on my ignore list, but my thread said 6 replies and I only saw 2. Don't bother responding I'm not reading your chit chat. Good luck with your dreams, I hope you are successful someday, no matter how late in life you are. :)





Anyways

I'm talking about intraday future spreads specifically. Is there a seperate symbol for spreads at CME? My apologies for the dumb question. :o
 
Quote from comintel:

Oh I did not know that background.......
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yeah well, I don't hold it against anybody. You can't believe how stupid I was when I started, (and still am when I'm trying to learn something new.)
 
Quote from vincentvega:

.....

I'm talking about intraday future spreads specifically. Is there a seperate symbol for spreads at CME? My apologies for the dumb question. :o
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There are internal symbols but you do not normally use them - you just quote and execute the spread as a combination or leg in, either way.

It sounds as if your broker platform is inadequate for trading spreads,
 
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