The bottom line is that trading 1 e-mini contract with even $1000 down is a pretty crazy amount of leverage, and more than enough for anybody. There is no point in trying to leverage yourself further, as you will just blow out your account. So what is the point of this whole discussion? Futures are already the equivalent of stock-based prop shops in terms of the amount of leverage you are given for putting down a small amount of money - no sane person would be trying to find a way to increase that.
Why? You make no sense. If you are going to say something is crazy, then you should explain "why". I don't think you know what you are talking about since you can't explain yourself. You say there is no point in it, but you can't explain "why". I personally think there is ALOT of point in it. How can somebody "blow out" their account". Explain yourself. What does "blow out" account mean anyways? What is that wording? Some teenange lingo? I never heard of the terms "blow out account". You call people names on here and say they are not sane. But you are the one that don't even know definitions and you can't explain yourself as to "why". You just come on here and make fun of people and call them names. You ask what the point of this whole discussion. That tells me you are clueless. Let me help you comprehend the discussion. Just go to the start of the discussion and read what the original question is and it will tell you the point of the "whole discussioin". If you don't know what you are talking about and you have nothing better to do but come on here and name call people names. Explain yourself and don't just come on here and call people names. Explain. I bet you can't do it.
Work for a prop firm for what? Work with your own money and plenty of leverage offered by a futures direct access firm. The when you get good at it...you manage other ppls accts. That what I did. Doesnt get any better than that....
Surdo, Is that what your mother told you to do after you were born? Your own mother told you to do us all a favor and She told you to crawl back in her hole after you were born. You should have listened to your mother when she told you to go back back in her hole. You should have never been born.
The absolute minimum reasonable stop loss on an e-mini trade should be anywhere from 4-6 ticks (many people make it bigger than this), which means that you're risking $50-75 (plus $5 commissions) on each trade for every contract you put on. If you're trading with $500 per contract (which is just about the most leverage you can get from a broker these days), you're risking 10-15% of your entire account on every trade. That is a recipe for disaster, as any trader with about 1 day of experience knows. It's a very common trading term, one that just about every single other trader on this site, and hell, half of the people I know that aren't even traders, fully understand. "Blowing out" your account means that you lose everything in your account. I can't believe you never heard of that.
And again, anyone with a brain in their head wouldn't actually trade with anywhere near that full amount of leverage. This is very basic risk management.
Futures Margins Participants in a futures contract are required to post performance bond margins in order to open and maintain a futures position. Futures margin requirements are set by the exchanges and are typically only 2 to 10 percent of the full value of the futures contract. Margins are financial guarantees required of both buyers and sellers of futures contracts to ensure that they fulfill their futures contract obligations. Initial Margin Before a futures position can be opened, there must be enough available balance in the futures trader's margin account to meet the initial margin requirement. Upon opening the futures position, an amount equal to the initial margin requirement will be deducted from the trader's margin account and transferred to the exchange's clearing firm. This money is held by the exchange clearinghouse as long as the futures position remains open. Maintenance Margin The maintenance margin is the minimum amount a futures trader is required to maintain in his margin account in order to hold a futures position. The maintenance margin level is usually slightly below the initial margin. If the balance in the futures trader's margin account falls below the maintenance margin level, he or she will receive a margin call to top up his margin account so as to meet the initial margin requirement. example Let's assume we have a speculator who has $10000 in his trading account. He decides to buy August Crude Oil at $40 per barrel. Each Crude Oil futures contract represents 1000 barrels and requires an initial margin of $9000 and has a maintenance margin level set at $6500. Since his account is $10000, which is more than the initial margin requirement, he can therefore open up one August Crude Oil futures position. One day later, the price of August Crude Oil drops to $38 a barrel. Our speculator has suffered an open position loss of $2000 ($2 x 1000 barrels) and thus his account balance drops to $8000. Although his balance is now lower than the initial margin requirement, he did not get the margin call as it is still above the maintenance level of $6500. Unfortunately, on the very next day, the price of August Crude Oil crashed further to $35, leading to an additional $3000 loss on his open Crude Oil position. With only $5000 left in his trading account, which is below the maintenance level of $6500, he received a call from his broker asking him to top up his trading account back to the initial level of $9000 in order to maintain his open Crude Oil position. This means that if the speculator wishes to stay in the position, he will need to deposit an additional $4000 into his trading account. Otherwise, if he decides to quit the position, the remaining $5000 in his account will be available to use for trading once again.
They are looking for fools and suckers who will pay them lots of commissions in the short term before they go broke. Responsible brokers looking for a long term customer relationship (and future commissions) don't offer absurd low margins.