Discussion in 'Index Futures' started by biologymajor, May 16, 2006.
Lowest I seen is 300.00 emini future margins. Is there a broker that can beat that price?
watch the caveats that go with the 300.00 margin. last i checked, the commission was outrageous. 500.00 day trade margin is pretty standard for YM, ES, ER retail accounts
How much more leverage do you want ?
Its amazing isn't it? $500 margins aren't low enough. LOL
$500 gives you well over 100 to 1 leverage. If you need lower min, that eithers says you doing to much size for the capital you have or are just plain crazy.
global sent me that spam a long time ago , I think it was like $10 rt with a cap at 20 cars. Sound like a scheme to get all those people with under 500 in their account to piss away another 200.
The right way of looking at this goes as follows:
(1) make an exhaustive study for your "well defined" trading strategy about it's risk of ruin - roughly speaking, find the drawdown you are willing to live with. For many strategies this drawdown can become arbitrary high when extending your time horizon without limit. This is the difficult part.
(2) add to the margin as asked and add the above drawdown value. This is the easy part.
(3) throw away all other oldwives tales about percentage of capital and other nonsense stories. You got the answer in (2) already.
(4) it is dowright stupid to use less leverage than that calculated above. You simply will grow rich at a lower pace.
(5) The lowest margin asked is always to your advantage as long as you did (1) and (2) right. Don't goof up on (1) and (2) or you'll end up into the poorhouse.
Ridiculous leverage in wrong hands is a ticking bomb. However, what a lot of people do not realize that, one the best features if leverage (besides giving traders an opportunity for large income comparing to account size) is amount of money at the broker. Keep as little as is required by your operation, you can always wire more if your positions require.
One old trader told me to never consider the profits mine until they deposited to my bank account. I totally agree.
Don't the brokers bargain with the 300.00 margin commissions like they do with the 500.00 commission? They said to name our own price. Does this go for the 300.00 margins also?
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