What are Overnight Margins on Futures?

[TradingBillions]

If I hold 2 positions overnight, why does my account have to have 2700 dollars to cover? Can someone please simply explain to me what this means?

Thanks!

 

[monee]

Check www.cme.com for overnight margins.

Last time I checked the overnight margin requirement for 1 E-mini SP 500 futures contract was $3500.

Most brokers charge between $300
and $1750 per contract for intraday only margin.

For most brokers once the position is held after 3:45-4:15
Eastern Standard Time you must have the overnight margin requirement in your account.

 

[illiquid]

Maintenance margin is slightly less for positions already held (which would apply in your case), as opposed to initial margin for opening a position.

 

[2ticks]

Quote from illiquid:

Maintenance margin is slightly less for positions already held (which would apply in your case), as opposed to initial margin for opening a position.

May or may not be true. Depends on brokerage and/or clearing firm. Would be true only if broker/clearing is willing to (potentially) go at risk for initial overnight margin requirement on a position that was opened based on day-trade margins.

Also FWIW, most brokers will allow 5 business days for adding funds needed for such underfunded situations. After that, you're likely out of business.