Margin requirement futures question

Discussion in 'Trading' started by Ronjohn, May 2, 2016.

  1. Ronjohn

    Ronjohn

    Hi,

    I was hoping someone could clear this margin question up for me.

    I would like to to trade the E-micro FX futures contract. The margin is $286 for the USD/JPY and the maintenance is $260. I believe the tic price is one dollar. If I wanted to trade five contracts, would I need to have a margin of 1,430 286 X 5 contracts. Could someone please give me a hand with this. Thank you
     
  2. K-Pia likes this.
  3. K-Pia

    K-Pia

    It's this one
    http://www.cmegroup.com/trading/fx/e-micros/e-micro-japanese-yen_contract_specifications.html

    0.9387$ tick value.
    Knowing that the comission is > 2$
    If I was you. I wouldn't day trade micro FX.
    The cost is way too high compared to the tick value.
     
    Last edited: May 2, 2016
    CBC and DarthSidious like this.
  4. K-Pia likes this.
  5. K-Pia

    K-Pia

    No worry ;)
    You've done a great job.
    That's what came to my mind too.
    But I read it twice and saw he mentioned M6J
     
  6. Ronjohn

    Ronjohn

  7. Ronjohn

    Ronjohn

    Thanks for the information
     
  8. K-Pia

    K-Pia

    If really you want to trade Micro FX,
    Pick Eur/Usd. It has a better Return / Cost.
    As DarthSidious said, it's 1.25$ per tick,
    For the same commission as M6J.
    But don't even try to scalp them.
    It's more for Swing trader.

    M6E isn't that liquid ...
    But still more than M6J I guess.
    It's very boring also. And prone to slippage.