Quote from Coach Potato:
Hi, newbie here. How much money is needed to day trade 1 E-mini S&P 500 contract?
The price of 1 sp500 emini contract is $50 x E-mini S&P 500 futures price. Assuming SP500 is at 1100. So the price per contract would be $55000. Intraday Initial Margin is $1406. Intraday Maintenance margin is $1125. Does this means I need $56406 ($55000+$1406)just to start trading 1 e-mini sp500 contract? How much leverage is allow in emini sp500?
Intraday margin is at the discretion of your broker. All of them can have a different requirement for intraday. The initial margin is all you deposit with the broker. You do not need the value of the contract deposited. That is your leverage. Using your example, your leverage would be $55,000 divided by $1406 or about 39 to 1.
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