New Futures Margin and Leverage

F

Fohat

Today Chicago Mercantile Exchange has revised its futurues margins.
Emini Nasdaq futures CME margin was lowered to:
Initial: $3000 Maintenance: $2400

With 1/2 daytrading margin those will be $1500 and $1200 respectively.

With Nasdaq 100 around 1200, this will give a daytrading leverage for NQ of over 1200*20:1500 = 16:1

Fohat
 
Fohat

Posts like you made are really useful - thank u

when was it changed?

margin makes a big difference to return percentage - so this is excellent news

I don't totaly get why i have not been contacted by a broker to tell me this - they would have known the change was coming some time ago

i have checked a couple of web sites and there is no mention as news - but margin pages have been updated

this was the problem with all the internet companies that ended up going belly up - they talked the talk, but their sites were always so out of date - you could get more timely inofrmation from monthly magazines!
 
Brokers do not care much about margin as this is an automated process.
They download "SPAN risk parameter file" from CME´s FTP server each day.

SPAN® (Standard Portfolio Analysis of Risk®) is the industry standard for calculating performance bond requirements (margins) on the basis of overall portfolio risk. SPAN calculates risk for all enterprise levels on derivative and non-derivative instruments at numerous exchanges and clearing houses worldwide
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I am not sure what the definition of "care" is

but if you tried to take a trade when you do not have enough margin, you won't get it - so i guess brokers do care a lot since no trade - no brokerage fee

but more importantly is the percentage return for the trader and its effect on money management

and since most brokers go on about customer service - i would have thought they would be keen to be first with the news
 
Originally posted by virgin
Fohat,


No lowering for the E-mini S&P ??
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No significant change in ES margin:
Initial: $3,938 Maintenance: $3,150

ES Daytrading Leverage (1/2 CME margin): approximately, up to
50*1063.26:1969 = 27:1.
 
Presently (as of 2/04/02), the margin requirements
are as follows, subject to change at any time:
http://www.mytrack.com/dtfrules/index.html
-Security----- Initial(starting capital)- Maintenance(intra day)-----------------------------Requirement------ Requirement
---- E-mini S&P 500--------$2,000-----------$1,000
---- E-Mini Nasdaq 100-----$2,000-----------$1,000
---- Dow Jones Ind. Avg.---$2,000---------- $1,000


what really matter is what your broker require of your capital, I get the same deal from my broker but I have to ask for it, this is public post on mytrac so I think it is easier to accept.

so your leverage base on previous post should be
ES Daytrading Leverage (1/2 CME margin): approximately, up to
50*1063.26:1000 = 53:1.
 
I think you're mixing apples and oranges. Fohat posted interday margin requirements whereas you posted intraday (daytrading) margin requirements. Interday requirements are set by the exchange.

Originally posted by nkhoi
Presently (as of 2/04/02), the margin requirements
are as follows, subject to change at any time:
http://www.mytrack.com/dtfrules/index.html
-Security----- Initial(starting capital)- Maintenance(intra day)-----------------------------Requirement------ Requirement
---- E-mini S&P 500--------$2,000-----------$1,000
---- E-Mini Nasdaq 100-----$2,000-----------$1,000
---- Dow Jones Ind. Avg.---$2,000---------- $1,000


what really matter is what your broker require of your capital, I get the same deal from my broker but I have to ask for it, this is public post on mytrac so I think it is easier to accept.

so your leverage base on previous post should be
ES Daytrading Leverage (1/2 CME margin): approximately, up to
50*1063.26:1000 = 53:1.
More...
 
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