I want to daytrade, but only have $10,000

Discussion in 'Prop Firms' started by QQQTRADER, Sep 27, 2001.

  1. Fohat


    You actually "pay" the initial margin for each emini contract, which really is "a good faith deposit". The exchange(CME)<a href="http://www.cme.com/httpwrapper.cfm?wrap=%2Fwrappedpages%2Fclearing%2Fpbrates%2FPBISOutrightEQ%2Ehtm&beginAfterRE=%3Cbody%5B%5E%3E%5D%2B%3E&endBeforeRE=%3C%2Fbody">minimum initial margin</a> requirement is calculated and updated by CME every couple of months. But the final decision of what the initial margin will be, belongs to your futures broker, which may require higher than the exchange minimum margin. Some brokers can also offer lower intraday "daytrading" futures margin.

    Keep in mind that Futures are a contract, while a stock is a share in the ownership of an incorporated company. When you buy futures, you buy a contract, an obligation to buy or sell the underlying instrument in the future. That's why the stock margin is percent of your ownership(price of stock), while futures initial margin is a fixed "good faith deposit", determined by your broker, which guarantees that you'll meet your futures contractual obligation.

    2)i've got charting ok...is there such a thing similiar to level 2 on these?

    Yes, it's usually called "Market depth" and it shows the top 5 levels of emini bids and asks. Brokers usually provide it as a free service.

    #11     Sep 27, 2001
  2. vikana

    vikana Moderator

    If you insist on day trading, I can only recommend that you either go pro or try the mini futures.

    With only 10k behind you, I'd recommend that you swing trade for while to build your skills. After that futures or pro firms would be a natural step
    #12     Sep 27, 2001