I'm interested in trading the ES. Most of the brokers require 5k minimum to open an account. I'm a little confused on the initial margin requirement. Based on requirements below... Assuming my balance is 5000. Am I correct that I could by 3 ES contracts for 1500, but I would get a margin call if they fell 4 points... 5000 - (150*4=600) = 4400, because the maintenance is 4500. and I could not carry even 1 contract overnight? because the maintenance is 5625. http://www.tradewithvelocity.com/commissions/chicago-mercantile-exchange.aspx
1) You're badly undercapitalized. 2) You may be eligible for $500/contract daytrade margin or only a higher figure, i.e. $1,000, $2,000 or $5,000. 3) A 4-point fall is a $200 loss per contract, not $150. 4) Your position size should be 1-lot only and no more. 5) You wouldn't be able to carry overnighters, unless your daytrade margin is in effect somehow.