YM Overnight Margin Question

doragio · Mar 31, 2008

This thing with the intra-day and overnight margins are a bit confusing so I'm hoping someone can shed some light on this.

Currently my broker I'm demoing has 500 intra-day margins for YM contract. And then this margin fluctuates into 3000+ or so after regular trading hours it seems

So let's say I'm long 4 contracts of YM on a 10k acct. Effectively my intra-day margin is 2000, now let's say by the end of regular trading session I'm breakeven and would like to hold overnight. At this point, according to the margins, 3000 X 4 = 12k for margin requirements. Does this mean that at this point irregardless of my profits or losses, because the margins exceed my 10k acct that the system will force liquidate?

Thanks

Lucrum · Mar 31, 2008

Yes, at least a partial liquidation.
I believe overnight maintenance margin is $2802/contract

Spectra · Mar 31, 2008

Yes. Make sure you have enough to cover the over night if your going to be sleeping with any positions.

jeb9999 · Mar 31, 2008

Current overnight margin for the YM is $3503 (from CME Group website). With exactly 10K in your account you would only be able to hold 2 YM contracts overnight. If you had profits on open trades that pushed your account above $10,509 you would be able to hold 3 contracts overnight.

Lucrum · Mar 31, 2008

Quote from jeb9999:

Current overnight margin for the YM is $3503 (from CME Group website).

Initial performance bond (margin), maintenance margin is what would be in effect to hold an existing position overnight.

jeb9999 · Mar 31, 2008

Quote from Lucrum:

Initial performance bond (margin), maintenance margin is what would be in effect to hold an existing position overnight.

Maintenance margin only comes into play after you have put up the full overnight initial margin for your position. To start with maintenance margin leaves zero room for the position to go against you.

Lucrum · Apr 1, 2008

Quote from jeb9999:

Maintenance margin only comes into play after you have put up the full overnight initial margin for your position...

True, in the thread starters case though he had initiated a position using intra day margin. Then at 4pm the requirement reverts to maintenance margin since he was already in the position.

doragio · Apr 23, 2008

Thanks everyone for their input and comments. been away for a while.

larrybf · Apr 23, 2008

RELATED QUESTION ???? iF I OPEN A POSITION in the es mini contract at 8:00 am (nyc) time and close the position by 1 pm each day on a regular basis are there brokers that allow intrday margin rules for this trade??

Lucrum · Apr 23, 2008

Quote from larrybf:

RELATED QUESTION ???? iF I OPEN A POSITION in the es mini contract at 8:00 am (nyc) time and close the position by 1 pm each day on a regular basis are there brokers that allow intrday margin rules for this trade??

As far as I know intra day margins will only apply between 09:30 - 4:00