Are there no margin interest charges associated with futures contracts (in particular index equity) at all? And if this is true, is it true for both long and short positions?
Well I've been only trading intra day but thinking about holding overnight. I held overnight with 2 ES contracts but was not charged any interest. Also, I've read on some sites that futures do not have margin interest associated with them....
it's obvious you don't understand how futures are priced first google a bit on theoretical pricing ...
What do you mean by interest charges on margin?By that do you mean borrowing charges on the Performance Bond placed in the account to finance the futures position?
I mean, I have 25K in my account. I hold 140K worth of ES contracts overnight. Am I charged interest on 140K - 25K= 115K?
I suggest you read this carefully before asking additional retarded questions on here or taking a position! http://www.cme.com/files/intro_fut_opt.pdf http://www.cme.com/glossary/A.html
What you need to determine is what you need in your account to pay for the position (I.E. margin).If you don't go over you will not incur any charges.
So just as long as you meet the margin requirements, there's no interest? and this is true whether you are short or long?