Futures spread trading margin

Discussion in 'Trading' started by heispark, Apr 25, 2020.

  1. heispark

    heispark

    For example, when I buy May contract of /NG and sell June contract of /NG at the same time, my broker AMP still charges $3500 ($1750 x 2) for overnight margin. Is this the same in other brokers?
     
  2. Even on Thinkorswim it’s 750 brokers margins can be higher than CME but not that much more
     
    Last edited: Apr 25, 2020
    heispark likes this.
  3. Overnight

    Overnight

    AMP will not recognize the margin reduction at closing time. That is the one drawback of using a deep discount broker. It is the most nonsensical shit to see that AMP goes, "OOOoohhhhh! 5 minutes before the market closes, you are at full margin! But when the market re-opens an hour later, you are back to that deep discounted margin!"

    When the market closes, your statement will show that you receive the spread discount!

    It's like, WTF? And then it is like, "Whatever".

    So trade as if you have full margin on every contract, and you will not have to sweat it. None of these brokers knows what is going on, and how to handle performance bonds, etc etc.

     
    theledger, bone and heispark like this.
  4. Real Money

    Real Money

    Hey Overnight a question, if you would be so kind.

    Does AMP recognize exchange performance bond offsets during RTH?

    I've never used AMP.
     
    bone likes this.
  5. Overnight

    Overnight

    I don't know as I've never tried to max lever an offset position. You should ask them directly.
     
  6. Real Money

    Real Money

    What do you know about this? They recognize it before closing? Or you don't know. Which is it?
     
  7. Overnight

    Overnight

    It's an oddball thing. They say on the phone that there is no offset 5 minutes before the close. Meanwhile, on the statement, it shows the reduced margin. I never followed through with getting to the bottom of it since I don't trade in a way that it would matter to me. I.E, I don't over lever.
     
    Real Money likes this.
  8. brench

    brench

    On IB it's 1178£
     
  9. Shop your broker based in margin reqs and their liqudation procedure first before commissions.
     
    #10     Apr 26, 2020