Futures account size for trading

Discussion in 'Index Futures' started by ceaser, May 19, 2022.

  1. ceaser

    ceaser

    What should be the minimum account size to start trading both futures and micro futures.
     
  2. This depends on your max drawdown and cushion needed for margin, nothing more.

    So for example, if you have a win rate of 50% you can expect ~ losing streak of 10 over 1000 trades if every trade is independent.

    If you lose $500 each time, then you need a drawdown of at least $5000. I'd double this because you can have a losing streak of 10, a winner and then another losing streak.

    Then the rest of the account should be funded according to the margin needed to trade the size you desire. I'd double this as well.

    Given a win rate of 50% with a 2/1 win/loss ratio where you lose $500 when you're wrong, then I would fund it with a minimum of 20K if you're using a discount futures broker.

    If you don't know these numbers then you shouldn't try to fund an account yet.
     
    KCalhoun and murray t turtle like this.
  3. maxinger

    maxinger

    $10K should be quite decent to day trade futures.
     
  4. easymon1

    easymon1

  5. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    Depends on your risk capital to start with, after that pointers above about method, drawdowns etc. come into play. For daytrading, 10k is a good level. Most brokers will ask for a minimum account of $2500 or so.
     
  6. Five times whatever the margin requirements. Thats a conservative starting point.
     
    CannonTrading_Ilan likes this.
  7. ceaser

    ceaser

    Seems like 10,000 to 12,000 seems to be the amount, Thanks dudes.
     
  8. Millionaire

    Millionaire

    If you plan to day trade only Stock Index Futures (SIFs) you can start with less.

    Say 2.5K and trade just 1 micro lot at a time to prove to yourself you can do it.

    If holding overnight or trading something other than SIFs you will need more.
     
    Last edited: May 20, 2022
  9. bln

    bln

    Depends trading style. A day trader with tight stops will require a lot less Eq than a swing trader with wide stops. You have to do the math yourself as it depends on ones strategy.

    The MNQ got a point size of $2, one does not need that much Eq to trade it.
     
    murray t turtle likes this.
  10. Gasparov

    Gasparov

    $500-$1000 for micros. $2000-5000 for full contracts. However with high volatility many (or all) brokers raise the requirements on the full contracts. I've seen it go up to $16k back in 2020, guessing it may be $20k now. I haven't traded my personal account in a while, so maybe someone else knows better.
     
    #10     May 20, 2022
    murray t turtle likes this.