5625 initial margin

Discussion in 'Index Futures' started by velma, Dec 18, 2009.

  1. velma


    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.

  2. 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. :cool: