ES Margin - Help?!?

Discussion in 'Index Futures' started by SuperBanda, Sep 25, 2006.

  1. I would like to start trading ES contracts daily. I am using IB. I have not understood how margin will work.

    Now the bud/ask is 1327.75/1328.00. Let's say I buy 1 contract. What will be the margin? Please consider that I want to close each position before the close.

    Many thanks for the help.
  2. Pekelo


    You clearly don't understand what margin is and how it works. You might want to educate yourself before you start trading ES.

    P.S.: Margin has nothing to do with the bid/Ask spread but the difference between your entry price and the current price of the future. The margin has to be bigger than that difference if you are losing, otherwise you get a margincall or your position will be closed...

    I think IB's intraday margin is $1200 for ES. If you entered the trade when you had 2K on your account, you can let the trade go against you by (2000-1200)/50=16 ES points, before IB closes the trade for you...(or they ask you to put more money on your account)
  3. You also have to realize that IB has an information tab on their website which details margin for stocks options and futures, including... ES.

    The skill which one needs to undertake simple research to find the answer to such a question on the IB site are pale in comparison to the skills needed to trade. You already tripped on the first gate :D
  4. =================

    Thats about right,
    except $1200 per contract is /was YM;
    ES is about1900-$2000, if the bid gets below say $ 2000 in your account [best to check exact amount yourself, this is reasonsably close] IB will sell it for you:cool:
  5. You need to look at the initial margin and intraday margin (under margin requirements on the IB web site). Unless I am mistaken you have to satisfy the initial margin requirement to open a position and intraday margin requirement to stay in the position (otherwise the position will be automatically liquidated). Also don't forget that after 4:15 PM overnight margin requirements apply.