Intraday vs Overnght Margin

How do firms know if you are going to be holding a position overnight or intraday when considering maintenace margin?

Meaning...
if intraday margin on a e-mini is $2,000 and overnight is $4,000.
If a person with a $5,000 futures account buys 2 contracts using $4,000 then holds it overnight requiring $8,000.

When does the customer receive a margin call? In the morning?

Do all brokers allow this type of un-funded trading?

Thanks,

 

Well, if you do that on a regular basis, I'm sure they would close your account.

They should call you if you have a margin call or the next day they will tell you to make sure that you are Flat.

 

IB TWS will use auto-liquidation (buy/sell market) at 3:50 pm ET for E-Minis.

 

Pleae explain....

Does this mean that at IB if an account does not meet the overnight margin at 3:50pm EST the computer will begin selleing out my positions until I meet the overnight maintenance amount?

Thanks,

 

With regard to stop orders on e-minis...

How during what market hours will my stop order be exposed to the market place. If I place a day stop order will it be lve for 24 hours?

I assume it will trigger based on the last sale.


Thanks,

 

IB closes you out when you don't meet the overnight margin. It is just like the auto-liquidation on daytrading margin. If you can't meet the overnight maintenance on an overnight position, then they also close you out.

Stop orders do not work on Globex during the non-traditional market hours. So stops only work from 9:30AM-4:15PM. If you have a GTC stop and it is past 4:15PM, the stop order is cancelled.

 

How is the liquidity after normal trading hours? Do they need to be offered 24 hours? Or is this just a convienance?

Thanks,

 

markets are really think in after hours. Overnight futures markets barely move. Every once in a while you have pretty big swings. Last night was pretty nutz on the S&P 500.

 

Your statement is only valid for non-native STP GTC orders that are simulated by IB´s servers. But you can use native STP LMT GTC orders which remain active thru all Globex sessions ( as long as not canceled by the exchange ).

 

So.... native stop orders on the GLOBEX (meaning they are sent directly to the GLOBEX with a stop attached) work continuosly, 24 hours?

How long do they work if they are not GTC (day only)?

Thanks,