" Overnight / Maintenance " Margin question ...............

M

md2324

I just want to double check ( before I place a trade ) , that:
so long as I close out the one position on ( Copper ) by Market close ( 3 p.m. cst. ) , that I can then re-Enter an Entirely NEW trade on that same market ( Copper ) come 5 p.m. cst. on that same day

And that by doing so , I will not have to have the Amount of $ in my account ( Maintenance / Overnight Margin wise ) to place this trade / trade the Futures and Commodities markets as forementioned ?

I want to enter a trade during the day ...... Exit that trade by the close of the Market on that same day , and then re-enter a trade on that same market AFTER the period of time has elapsed for me to bypass having to have X amount of dollars in my account to meet the Maintenance/Overnight Margin requirements

Thank you for any and all help and insigth
 
md2324 said:
...Exit that trade by the close of the Market on that same day , and then re-enter a trade on that same market AFTER the period of time has elapsed for me to bypass having to have X amount of dollars in my account to meet the Maintenance/Overnight Margin requirements

Thank you for any and all help and insigth
More...

Like OMM says, you should be golden. No worries.

You can test it with your broker account with a trade if you do not wish to call them and ask. Do exactly what you want to do as you describe, but on MGC, just 1 contract. Then look at your broker statements to see what is up. Then you will know exactly how your broker handles this situation. It won't break your bank doing it with a micro with one contract.
 
Thank you both for your replies

And great tip woth running a " test " on it Overnight using 1 MGC contract

So do the following:

Enter a trade on MGC and close out the trade at 2:50 p.m. cst.
Then at 3:01 p.m. cst re-enter the trade again ?
Or do I have to wait till the 5:00 p.m. time until I can re-enter into the trade to bypass having to have the Overnight/Maintenance Margin ?

Thank you again
 
md2324 said:
Thank you both for your replies

And great tip woth running a " test " on it Overnight using 1 MGC contract

So do the following:

Enter a trade on MGC and close out the trade at 2:50 p.m. cst.
Then at 3:01 p.m. cst re-enter the trade again ?
Or do I have to wait till the 5:00 p.m. time until I can re-enter into the trade to bypass having to have the Overnight/Maintenance Margin ?

Thank you again
More...

With MGC, you would need to be out before 4PM CT (or 5 minutes before; some brokers have that last 5 minute of market being the "warning call", but will not implement the overnight margin until the exact minute the market closes) and can then re-enter at 5PM CT. MGC is closed from 4PM CT to 5 PM CT, as per CME exchange rules. How your broker handles this may be different. Just try it and see.
 
Every notice how those on ET who quietly make real money never worry about margin? They're always well capitalized.
 
truetype said:
Every notice how those on ET who quietly make real money never worry about margin? They're always well capitalized.
More...

To test how a broker works with your trading account on overnight margin with a single micro lot does not require "well capitalization". Can do it with a grand in your account.
 
md2324 said:
I just want to double check ( before I place a trade ) , that:
so long as I close out the one position on ( Copper ) by Market close ( 3 p.m. cst. ) , that I can then re-Enter an Entirely NEW trade on that same market ( Copper ) come 5 p.m. cst. on that same day

And that by doing so , I will not have to have the Amount of $ in my account ( Maintenance / Overnight Margin wise ) to place this trade / trade the Futures and Commodities markets as forementioned ?

I want to enter a trade during the day ...... Exit that trade by the close of the Market on that same day , and then re-enter a trade on that same market AFTER the period of time has elapsed for me to bypass having to have X amount of dollars in my account to meet the Maintenance/Overnight Margin requirements

Thank you for any and all help and insigth
More...

Do you want to do this because you have a small account, but not enough to cover margin on 1 copper future? Is your broker offering you lower margin for DT? Margin is only $3,465/future.
 
Hi Robert Morse ,

I only have $5,000 account size

So I can't hold Overnight " on a 1 contract position on the bigger markets ( ES, CL, SI, YM , TF , etc. ) , while maintaining a safe cushion / a " safe " Stop Loss in place with just $5,000 in my account

I hate closing out a position " early " that I have a strong bias on that it will continue moving strongly in my favor , but I don't have the account size right now to hold Overnight " / the required Maintenance margin that is required to do so
 
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