New Futures Margin and Leverage

Discussion in 'Index Futures' started by Fohat, May 3, 2002.

  1. Fohat


    Today Chicago Mercantile Exchange has revised its futurues margins.
    Emini Nasdaq futures CME margin was lowered to:
    Initial: $3000 Maintenance: $2400

    With 1/2 daytrading margin those will be $1500 and $1200 respectively.

    With Nasdaq 100 around 1200, this will give a daytrading leverage for NQ of over 1200*20:1500 = 16:1

  2. stevet



    Posts like you made are really useful - thank u

    when was it changed?

    margin makes a big difference to return percentage - so this is excellent news

    I don't totaly get why i have not been contacted by a broker to tell me this - they would have known the change was coming some time ago

    i have checked a couple of web sites and there is no mention as news - but margin pages have been updated

    this was the problem with all the internet companies that ended up going belly up - they talked the talk, but their sites were always so out of date - you could get more timely inofrmation from monthly magazines!
  3. Brokers do not care much about margin as this is an automated process.
    They download "SPAN risk parameter file" from CME´s FTP server each day.

  4. stevet


    I am not sure what the definition of "care" is

    but if you tried to take a trade when you do not have enough margin, you won't get it - so i guess brokers do care a lot since no trade - no brokerage fee

    but more importantly is the percentage return for the trader and its effect on money management

    and since most brokers go on about customer service - i would have thought they would be keen to be first with the news
  5. Subscribe to the pbrates mailing list yourself and then you won't have to rely on anyone else to inform you about performance bond rate changes.
  6. stevet


    thank you
  7. virgin



    No lowering for the E-mini S&P ??
  8. Fohat


    No significant change in ES margin:
    Initial: $3,938 Maintenance: $3,150

    ES Daytrading Leverage (1/2 CME margin): approximately, up to
    50*1063.26:1969 = 27:1.
  9. nkhoi


    Presently (as of 2/04/02), the margin requirements
    are as follows, subject to change at any time:
    -Security----- Initial(starting capital)- Maintenance(intra day)-----------------------------Requirement------ Requirement
    ---- E-mini S&P 500--------$2,000-----------$1,000
    ---- E-Mini Nasdaq 100-----$2,000-----------$1,000
    ---- Dow Jones Ind. Avg.---$2,000---------- $1,000

    what really matter is what your broker require of your capital, I get the same deal from my broker but I have to ask for it, this is public post on mytrac so I think it is easier to accept.

    so your leverage base on previous post should be
    ES Daytrading Leverage (1/2 CME margin): approximately, up to
    50*1063.26:1000 = 53:1.
  10. I think you're mixing apples and oranges. Fohat posted interday margin requirements whereas you posted intraday (daytrading) margin requirements. Interday requirements are set by the exchange.

    #10     May 3, 2002