Margin requirements

[Vinny1]

Anyone know what the initial margin requirements are for the ES and NQ per contract for day and swing trades?

 

[Guerilla]

Your broker will decide what your day-trade margins will be. Many will allow 1/2 of overnight margins. If they don't you should seek one who does. Clearing firms have to meet an intraday margin requirement from the CME clearing house but you don't. You can get margin rates here for these products:

http://www.cme.com/httpwrapper.cfm?...m&beginAfterRE=<body[^>]+>&endBeforeRE=</body

 

[Vinny1]

Thanks. Are ES and NQ marked to market daily like other futures contracts if held overnight?

 

[Guerilla]

Yes, all futures are MTM every day and sometimes more often for intraday clearing firm margin requirements. MTM every day is what is also referred to as variation margin.

 

[josbarr]

Daytrade margins for ES and NQ are about $1000. Some firms it's more, some a bit less. You'll need the ($3938 & $3000 ) exchange margin's to hold overnight.



jbarry@proedgeonline.com

 

[thereuare]

Josbar (or anyone that knows),

If overnight margin on ES is ~$4000, and overnight on NQ is ~$3000, and most brokers allow 50% of overnight margin, how do you figure that daytrading margin on the above is $1000/each?

I thought the daytrading margin would be 50% of the overnight margin, thus making the ES ~$2000 and the NQ ~$1500.

I'm NOT saying you're wrong (as i'm new to this), but it would seem that the numbers i posted make sense if you calculate it... did you see the numbers you mentioned posted somewhere, or did you just round the numbers very roughly?

Thanks.

 

[josbarr]

Thereuare, Most brokers set their own daytrade margins as Guerilla mentioned. 50% margin is a good rule of thumb but my experience talking with clients and other traders is that $1000 / contract seems to be the average.

Joe Barry

 

[TriPack]

Originally posted by thereuare
Josbar (or anyone that knows),

If overnight margin on ES is ~$4000, and overnight on NQ is ~$3000, and most brokers allow 50% of overnight margin, how do you figure that daytrading margin on the above is $1000/each?

I thought the daytrading margin would be 50% of the overnight margin, thus making the ES ~$2000 and the NQ ~$1500.

I'm NOT saying you're wrong (as i'm new to this), but it would seem that the numbers i posted make sense if you calculate it... did you see the numbers you mentioned posted somewhere, or did you just round the numbers very roughly?

Thanks.

Brokers can set whatever daytrading margin they want. Ultimately they are betting that you don't blow out, however.

 

[thereuare]

I understand what you all are saying....

but if they set daytrading margin requirements at 50% of overnight, wouldn't the numbers be $2000 for ES and $1500 for NQ

OR

am i confusing two different things, and daytrading margin ($1000) is different than 50% of overnight that i'm refering to.

Does anybody know what the requirements are with IB, as i'm getting ready to fund an account and would like to send them the least amount of money as possible (don't worry, i'll include some extra money to make up for any beginning losses).

Thanks.

 

[josbarr]

Thereuare

It's different. 50% margin is $2000, $1500 respectively.

Some brokers set lower margins, mine are $1000 for example for both ES, NQ. You'd have to ask IB to see what their's are.

Joe Barry