I don't trade futures but I want to know if someone can explain to me how much someone made if they say that they traded the S&P Futures Eminis - They traded 5 contracts and made 13 points in one day . How much did the 5 contracts cost and How much did they need to have in their account ? How much profit did they make ? Thanks
12.5 per tick * 5 contracts * 13 ticks = 812.5 here is the cme fee schedule http://www.cmegroup.com/company/files/CME_Fee_Schedule.pdf
He said points not ticks 12.5 x 5 x 52 (13 points x 4 ticks / point ) = $3,250 / day not including commission.
As FroggerMan states, gearing is $50/point, and the e-mini S&P500 trades in quarter points (i.e. ticks). The minimum margin (i.e. performance bond) requirement is set by the exchange, but brokers can require more. It looks like the margin is currently $5k: http://www.cmegroup.com/clearing/margins/#e=CME&a=EQUITY+INDEX&p=ES
Ok ... So if its $50 per point and you have 5 contracts plus 13 points Thats 50 x 5 x 13 = $3250 So are you saying that all you need is $5000 in your account to trade with 5 contracts ? Thanks
It's possible they made 0 profit if that was 13 pts. gross, and they did 163 round turns with 5 contracts each.
here is a site S&P E-mini or S&P 500 Futures Contract Explained http://www.neweratrader.com/Resources/the-sap-e-min.html
Almost ... It's $5k per contract. But that can change with little notice. Also, your broker will get alarmed if you put a large portion of your account value at risk. I would not recommend going much over 20-25%. If you get an adverse move, you will have to come up with more cash FAST, or your broker will dump your position at a big loss. Leverage is why people say it is so risky to trade futures and options.