Is there a large trader rule when scalping the E-Mini S&P?

Discussion in 'Index Futures' started by eliteviper777, Sep 24, 2015.

  1. If i trade 50-100 contracts a day am i going to qualify for a day trader rule. Is there a large trader rule for futures if so what is the limit?
     
    lawrence-lugar likes this.
  2. With regards to the position size limits, they are set by the exchanges and regulators, and depend on the product liquidity. For example, the ES position size limit is about 100,000 contracts, from what I can remember.

    With regards to the day trader rule, you need to specify which one you refer to. There is one for IRS purposes, one for the purposes of determining the minimum account size, one for determining the margin, one for determining your commission rates, and probably other rules, as well.
     
    Last edited: Sep 25, 2015
  3. rmorse

    rmorse Sponsor

    As long as you are not preaching position limits, which are high, you don't have to worry about this until you are contacted. I believe the CFTC only looks at overnight positions, but if you have positions that meet their qualification for the future you trade, your FCM will file a Form 102 to the CFTC. http://www.cftc.gov/idc/groups/public/@forms/documents/file/cftcform102.pdf

    Current reporting levels are found at http://www.gpo.gov/fdsys/pkg/CFR-2015-title17-vol1/xml/CFR-2015-title17-vol1-sec15-03.xml

    From that report, the CFTC will request more information on you with a Form 40. The form 40 is very simple. It is a request for information about you, not your trading. http://www.cftc.gov/idc/groups/public/@forms/documents/file/cftcform40.pdf

    Bob
     
    marketsurfer likes this.
  4. Perfect exactly what i was looking for.