No Margin Interest on Futures?

Discussion in 'Trading' started by rc5781, Nov 23, 2007.

  1. rc5781


    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?
  2. MrPaul


    Not that I am aware of. I only trade intra-day though.
  3. rc5781


    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....
  4. cvds16


    it's obvious you don't understand how futures are priced first google a bit on theoretical pricing ...
  5. 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?
  6. rc5781


    uh, thanks anyway...anyone else?
  7. rc5781


    I mean, I have 25K in my account. I hold 140K worth of ES contracts overnight. Am I charged interest on 140K - 25K= 115K?
  8. Surdo


  9. 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.
  10. rc5781


    So just as long as you meet the margin requirements, there's no interest? and this is true whether you are short or long?
    #10     Nov 23, 2007