Futures in IRA Acc't ?

Discussion in 'Retail Brokers' started by ewile, Feb 21, 2004.

  1. ewile


    I'm interested in trading futures in my IRA account. What is the minimum amount of money needed in the account to trade 1 contract of the ES or NQ and to be able to hold positions overnight.
  2. http://www.cme.com/html.wrap/wrappedpages/clearing/pbrates/PBISOutrightEQ.htm

    I do not know any Margins higher than this, even with an IRA. Consider the IRA fees and minimum balance requirement that individual firms might impose....

    I do not mean to put my nose in your plan.....but try not to specualte with more than 15% of yur total portfolio....be careful.

    Also remember the IRA is a wonderfull instrument to use to purchase your first home with.....you can get an exclusiion from penalities for early withdrawel if used for a 1st time home purchase ( if you bought or sold an owner occupied home within 3 years, then you must wait until 36 months passes without ownership).

    Michael B.


    NQ = $3,750.00 initially per contract
    ES = $4,000.00 initially per contract

    Then, after your in your position:

    NQ = $3,200.00 per contract
    ES = $3,000.00 per contract

  3. flyers&divers

    flyers&divers Guest

    Be careful! I remember a lengthy conversation on an earlier thread on E T that too frequent trading may disqualify retirement accounts.

    Does anyone have info on this?
  4. If this is true.....I wonder who monitors this and with what criteria...Would it be the custodians responsibility? or would the IRS simple disallow the deduction?

    Describe frequent trading?

    Michael B.

  5. ewile


    ES = $4,000.00 initially per contract
    ES = $3,000.00 per contract

    So this means that you need 4,000 in your account to open the position but it is automatically liquidated if the balance of your account drops below 3,000?

    As for overnight, the IB website indicates that overnight initial is 4,000 and maintenence is 3,200.
    So this means that to take the position past 4:00 you need 4,000 and if the account dips below 3,200 the position is liquidated?

  6. Reverse the last two sorry

  7. Yes if the instrument falls in price if you are long or rises in price if you are short...and your value is reduced to those maintnence levels then IB's computers liquidate you...

    I have never had this happen, but someone here might have first-hand experience and can confirm this...

    Michael B.

    P.S. some firms observe looser day-trading margins if you do not hold into the next session from entry (passing into a new session is considered an overnight hold...session times are 15:30-next day15:15CST closed on Saturdays and opening on Sundays at 16:30CST. MB Trading may be the exception to these times.

  8. Hmmm..... yeah.... trading futures in an IRA account. Here is a
    copy and paste from the IB site:

    "What Can I Invest In? Stocks plus covered call writing (covered shares are restricted), buying calls (funds equal to the aggregate exercise value of the long calls are restricted), and buying puts (shares subject to exercise are restricted). The IB IRA may be structured as a Stock Cash Account (if you choose to trade only stocks) or as a Stock Options Level I Account (if you choose to trade options in your IRA). IRAs may also invest in futures."

    As you see, the last sentence mentions INVEST IN FUTURES...
    Doesn't say TRADE futures..

    This was taken from the IRA fact page at IB...
  9. wdscott



    I don't understand the wording, "IRAs may also invest in futures."
    A futures contract is considered a short term derivative asset. Futures contracts are designed to be traded, not held as investments as stocks or bonds.

    How long do futures contracts need to be held in IRAs to be considered an investment?


    Dave Scott
  10. I have started another thread on the IRA/IB/Futures thing
    because I do not know the answer to this question...

    Not too sure if I needed to... :p
    #10     Feb 24, 2004