Insane margin on DAX

Discussion in 'Retail Brokers' started by samovar, Nov 3, 2017.

  1. samovar


    For DAX futures, IB quotes an initial margin of about 18,000 USD. However, when I tried to buy DAX today, the margin was double that, for a position size of 1. What's up with that? It's not the first time I see this, and IB's margin calculations are are too complicated to explain, are infuriating, and make position sizing a shot in the dark.
  2. Where did you find this quote by IB? Online through account management?
    I have come across discrepancies between their online instrument search function and the TWS box which you show in your message.
  3. Robert Morse

    Robert Morse Sponsor

    I'm not familiar with DAX futures. This is from a file I have on margin. Which one is this future? Wedbush Futures does not mark up exchange margin. For some foreign exchanges, we do need to use a carrying broker which can increase execution costs.

  4. With IB overnight margin is typically around the exchange margin rates. But could be more.

    IB offers some Futures products with reduced intra day margin, typically this is 50% of the overnight. This is only active during liquid market hours. After the liquid trading hours IB increases margin back to overnight margin.

    When the markets get really volatile IB sometimes removes intra day margin on all products. I dont think this is the case at the moment. So DAX should be 18000 during the day and 36000 overnight.

    The Notional value of a DAX futures is currently 336,000 euro's. So the overnight margin/leverage of 36K is currently about 10:1.

    This is about the same ratio for the margin on EUROSTOX 50 futures at IB.

    But more than say ES, which has overnight leverage closer to 15:1
    Last edited: Nov 4, 2017
    comagnum likes this.
  5. Surprise


    Maybe because you are trading the March contract ...
  6. algofy


    IB does what they want, when they want. Deal with it or move on to a different broker.
    shatteredx, Robert Morse and truetype like this.
  7. Overnight


    The top one listed as "FDAX" in your pic is the futures product. I took a look at Eurex's website and got a headache trying to find their listed margin requirements...Couldn't find it. As an aside, AMP currently lists FDAX maintenance margin at $28,000 per contract. I am guessing here that it translates to Euros somehow, so maybe it is €28,000?
  8. patrickrooney

    patrickrooney Sponsor

    There's always the mini-Dax, FDXM. Margin is about 1/5 the margin on the big contract.

    STOXX Europe 50 Index FSXP Eurex $2,300.00 $400.00
    DAX Index FDAX Eurex $28,000.00 $2,500.00
    MINI Dax FDXM Eurex $5,500.00 $500.00
    Dow Jones Euro STOXX 50 FESX Eurex $3,050.00 $500.00
    STOXX Europe 600 Index FXXP Eurex $1,450.00 $400.00
    Mini VSTOXX FVS Eurex $700.00 $250.00
    MarkBrown, comagnum and Robert Morse like this.
  9. truetype


    For those who want to pay more commish per unit of notional exposure!
    comagnum likes this.
  10. Turveyd


    i trade via FXCM 1:100 Margin, $1700 currently for a $10 position, I can trade down to $0.1 though thankfully. I stopped trading it when it shot up to $3600, DAX is very volatile currently, makes it great to day trade.

    Nas100 I can trade at $50 per pt, easy massively dropped that requirement for me.

    I presume you have 1:10 margin ??
    #10     Nov 5, 2017