Futures newbie, margin question

Discussion in 'Index Futures' started by 8hcap, Dec 16, 2002.

  1. 8hcap


    I'm pondering trading the ES or NQ, and was wondering about how margin works with these instruments. From what I've found, ES is $50 x index per contract. So, for ES trading at 890 X $50 = $44,500.

    It seems like this can add up FAST with multiple contracts. Does margin work the same with futures as with equites?

    If I have a 50k account, what could I trade utilizing margin?

  2. H2O


    No trying to be rudehere but :

    If you have to ask these questions : DON'T TRADE FUTURES.

    Basicly around $1000 / contract is required for trading (intraday) 1 contract ES mini
    So answerring your question you would be able to enter a position of 50 contracts - Every point change in the futures would be $2500,- !!!
    Take a look at the average daily range and you;ll understand.
  3. Quah


    That's the value of the contract - not the required margin. Full margin for ES is about $4K. Daytrading margins exist, depending on your broker.
  4. 8hcap


    Thanks, Rob. I don't intend to trade until I do understand this. Just looking for inputs from folks more experienced with this.

  5. dbphoenix


    No harm in asking questions. I doubt that the margin requirements come to "experienced" traders in a dream.

  6. wild