Hey, I'm interested in trading the Dow E-mini, although I need some help understanding how the margin requirements work. IB says that the intraday initial margin is $1219, and intraday maintenance margin is $975. Does this mean that they subtract $1219 from my account when I purchase a contract, and I must maintain $975 cash in my account until I sell it? I just want to make sure I understand these terms right. Also, if my account is not a margin account, can I still trade futures under these margin regulations?
http://www.interactivebrokers.com/en/trading/marginRequirements/fundamentals.php?ib_entity=llc I think you have to have a margin account but in any case you will have to have futures trading permission. You'll find that under acct. management on their site. Just for future reference although often refereed to as margin it's actually a performance bond.
It means you must have the initial margin amount in your account - it is not taken from your account. Then you must have the maintenance amount to keep the trade open. If you fall below the maintenance amount IB will automatically close the trade for you. The other thing to be aware of it the minimum account value to open a futures trade, currently 2000, I think. So the initial is of value if you trade multiple contracts or multiple markets. To trade the futures you must have the permissions, but it does not need to be a margin account. Make 'em pretty, Chris
Intraday margins depend on the firm; at the settlement time you must have the exchange amount. i heard that some firms charge you if you don't have enough margin or they liquidate. The place i trade at the day margin is $500 on e-mini's.
What the hell? Maybe I don't know my terminology exactly, but I do know that cash accounts can trade futures ... look at the description of it under Account Management.