Futures margin question

Discussion in 'Trading' started by 1a2b3cppp, Sep 11, 2008.

  1. Ok say you're at OEC and the margin for NQ is as follows:

    Initial: $2750
    Day: $500

    If you have a $10k account, now many NQs could you buy?

    20? ($500 x 20) = $10000

    3? ($2750 + 500) * 3 = $9750

    14? ($2750 initial + 500 for each additional (14)) = $9750

    How does it work?
  2. mr888


    If the contract is electronic, then day time margins apply for most of the day, so you can hold 20x$500 contracts, but this is not advisable because a price movement against you and you will face a margin call.

    Initial is for overnight margins basicly so you would be able to hold 3 contracts at $2750 a piece afterhours.

    Im not sure of the price movements/$ per tick on that contract but trading 1 or 2 contracts seems appropriate.
  3. Surdo


    Are you referring to The "Performance Bond" required to trade NQ?
  4. you also have a maintenance margin on the overnight holders.. so if it drosp to the maintenance leel you will have to satisfy a margin call back up to the initial margin. ..this does not apply to the day trde margin.. only overnight holders
  5. Call them and ask them! Typically $500 intraday is up to 20 cars, but day rates are between you and your broker, exchange is not involved at all as long as your fcm is capitalized per exchange and cftc.
  6. OEC will let you get the full amount of contract for the amount of money you got deposited in the account. So in your case it would be 20 cars (20 x 500 = 10 000). That applies to RTH (Regular trading Hours. Once the clock shows 4:00 PM, it goes to overnight margin which for ES is $4500. That will let you hold 2 cars. If for some reason you decide to keep the 20 in play. You will gt a margin call. OEC will allow you to keep the cars in play but you will not be able to add to the position and will only be allowed to get rid of them (hopefully for a profit). No matter what your account will be put on hold until you unload the position and will remain so for that day. So let's say you kept the 20 cars made $3000 OEC will let you cash in but you will not be able to place more orders for that day. If the market goes against you they will close your position when your accont gets to $500. Good Luck!
  7. Here's why I ask:

    I buy 1 contract and it says I'm using $2,750 of my buying power??? Shouldn't it only be $500?

    This is during normal trading hours I just did it right now.
  8. So I can only buy 3 NQ contracts with a $10k account cuz each one requirse $2,750????
  9. RL8093


    ... and what did they say?

    ET has been the default IB customer service for a long time but OEC also?? I hadn't heard that their CS sucks ... :confused:

  10. As intraday requirements are set by the fcm they use the exchange minimum posting requirements assuming the position you opened will be held overnight. As saxon said, if oec's current day trade requirements are $500 you can carry 1 open position per $500/equity in your account.

    However, be aware that intraday requirements, and for that matter exhcange requirements, can be changed at any time during periods of extreme volitility by your fcm or the exchange.

    Additionally, the regular trading hours end at 3:15 pm cst. That's when overnight requirements take effect. No disrespect in the correction saxon as I know your posting was for illustrative purposes.
    #10     Sep 12, 2008