Question about maintenance margin trading ES confused.

Quote from Susannah:

You just need to have enough for the liquidation value of your account to not go below the maintenance margin requirement. You'll have to figure out how many points you are willing to let it go. ES does lock limit after 5%, which they set every quarter I think, it was ~60 points the only time it's locked limit over night, but the limit is less now. I guess that would be the absolute most it could go against you overnight, the lock limit.

If you're trading with a small amount of money, you could just use SPY/SH and not have to short or use futures at all.
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iv'e enver heard that before...what exactly does that mean? lock limit? does that mean should a position go against you that much that they liquidate part of position regardless of account ballance?
 
Quote from nazzdack:
1) ?....No. It would be $1250,($50/handle times 25 handles), over $4950,(the maintenance level), giving $6200, ($1250+$4950), budgeted margin per contract in order to withstand a 25-handle drawdown per contract.
2) The same logic applies to long and short positions.
3) 25 handles is too much leeway. Consider using a tighter "stop".
4) If you ever receive a margin call, don't pay it. It means you are "badly wrong". :cool:
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you will need full margin for the first overnight.
then maintenance margin afterwards.
 
Quote from ER9:

iv'e enver heard that before...what exactly does that mean? lock limit? does that mean should a position go against you that much that they liquidate part of position regardless of account ballance?
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http://www.cme.com/trading/prd/equity/pricelimits.html

Don't know why the PDF linked there wasn't updated on Jan 1, it's still the one from Oct 1. Oh well, I don't know where to look for a current one if it's not on the CME site.

They are price limits. The actual futures aren't allowed to go down more than a certain amount during the night. They're supposed to be set to 5% of the underlying index each quarter at the beginning of the quarter, but I couldn't find limits dated Jan 1.

After the contract goes down by the limit amount, it stops trading. Actually, that isn't true, I saw it when it was locked down. You could buy it and that transaction would go through (for one tic above the limit), but there was no way to sell it. So, if you were long, you were potentially very screwed (but not really because the gap filled during the day, go figure, you would have ended up a winner buying during the lock limit down!).
 
Quote from Susannah:

http://www.cme.com/trading/prd/equity/pricelimits.html

Don't know why the PDF linked there wasn't updated on Jan 1, it's still the one from Oct 1. Oh well, I don't know where to look for a current one if it's not on the CME site.

They are price limits. The actual futures aren't allowed to go down more than a certain amount during the night. They're supposed to be set to 5% of the underlying index each quarter at the beginning of the quarter, but I couldn't find limits dated Jan 1.

After the contract goes down by the limit amount, it stops trading. Actually, that isn't true, I saw it when it was locked down. You could buy it and that transaction would go through (for one tic above the limit), but there was no way to sell it. So, if you were long, you were potentially very screwed (but not really because the gap filled during the day, go figure, you would have ended up a winner buying during the lock limit down!).
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why do i get a tingly feeling all over when i read this?

thank you for the link.....and your help has been much appreciated. think iv'e got a very good understanding now of what i needed to know and how it will affect me....
 
you need to know at exactly what price you'll get a margin call... as long that price is out of range in the current time frame.. let'er rip
 
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