Futures emini S&P

One caveat; you will need to maintain a net liq >$25k to avoid PDT regs.

 

now that's what I'm talking about. How to trade e minis with a 5k account (as long as you have >25k in your account to avoid PDT.)

 

don't count on the auto liquidation to cover your limit losses, it works all the time day in day out,but there is an small outside chance that say you are long eminis at 1320 and like atticus said there is a dirty nuke to the market, all the sudden there are no bids, the auto liquidate will try to sell at market and depending on what ever bid was not pulled,you will be filled at that price and if it is below the value in your acct, you will have to pay the difference

 

Atticus, you say that the risk is very low so I understand that a possiblity exist. So, let's continue with the example that is not real because i haven't done anything yet. I open an account, 5000 margin. Trade each day, close the position each day. Hold the position as long as the trend continue and finish by stop lose in the case the trend breaks.

Lets supposed that I loose 100 points, 5000 . Let's sopposed that something happens, i forgot to put a stop loose, the internet connection drop, anything else.

My account balance will be 0. If at that point I decied that I do not want to risk more I can close my account with the broker without any kind of debt?

Amount are just examples.

Thanks
Joaquin

 

Ouch.

Yeah I didn't mention that in my original reply. It's possible, but not very likely, especially if you don't hold overnight.

 

I was under the impression that PDT only applied to equities.

 

About the PDT, are guys saying that I cannot trade e mini SP with an account less than 25K?

If I executes more than three day trades within 5 trading days my account will be flagged and frozen for about 90 days. A day is concider for example a day in which I do two trades or this count as two day trades?

I want to test small first, and then I can increase to 25K when I´m confortable.

Thanks
Joaquin

 

PDT DOES NOT apply to futures fella!

 

I wasn't talking to you, read first, then post

 

no, atticus was just giving you a synthetic allternative using SPY options, in which case yes you would be subject to PDT, but as so many astute posters pointed out, you are exempt when trading futures.

A lot of your questions will be answered when you set up a simulated account. Whichever online broker you choose will offer one. Some require to open an account first, others will let you paper trade for free.