No Margin Interest on Futures?

R

rc5781

Are there no margin interest charges associated with futures contracts (in particular index equity) at all?

And if this is true, is it true for both long and short positions?
 
Quote from rc5781:

Are there no margin interest charges associated with futures contracts (in particular index equity) at all?

And if this is true, is it true for both long and short positions?
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Not that I am aware of. I only trade intra-day though.
 
Well I've been only trading intra day but thinking about holding overnight. I held overnight with 2 ES contracts but was not charged any interest. Also, I've read on some sites that futures do not have margin interest associated with them....
 
What do you mean by interest charges on margin?By that do you mean borrowing charges on the Performance Bond placed in the account to finance the futures position?
 
Quote from cvds16:

it's obvious you don't understand how futures are priced first google a bit on theoretical pricing ...
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uh, thanks anyway...anyone else?
 
Quote from onthesidelines:

What do you mean by interest charges on margin?By that do you mean borrowing charges on the Performance Bond placed in the account to finance the futures position?
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I mean, I have 25K in my account. I hold 140K worth of ES contracts overnight. Am I charged interest on 140K - 25K= 115K?
 
What you need to determine is what you need in your account to pay for the position (I.E. margin).If you don't go over you will not incur any charges.
 
Quote from onthesidelines:

What you need to determine is what you need in your account to pay for the position (I.E. margin).If you don't go over you will not incur any charges.
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So just as long as you meet the margin requirements, there's no interest? and this is true whether you are short or long?
 
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