Overseas margin

Discussion in 'Trading' started by ljyoung, May 7, 2012.

  1. This is the current CME performance bond/margin requirements for the ES contract:
    CME EQUITY INDEX E-MINI S&P 500 FUTURES ES 06/2012 06/2013 4,375 USD 3,500 USD

    Could someone please tell me if traders, say in the London futures 'daytime trading' market, which opens at 3 AM Eastern Time have to post the full initial margin amount ($4375 USD) for each contract because it is after-hours with respect to the US futures market (9:30 AM to 4:15 PM)? In other words, is it only during US RFTH that reduced margin requirements (like $400/ES contract) can be in effect?
  2. ocean5


    That`s correct.From 4:15 pm est to 3:45pm est reduced margin in effect.ETH Globex
  3. Sorry ocean5 I'm not getting what you are saying.

    US RFTH (regular futures trading hours) are from 9:30 AM till 4:15 PM ET. As we all know, during that time one can daytrade futures and pay as little as $400/contract. Are you saying that as far as you know, anytime outside that time frame, all over the world, the full margin price per ES contract (currently $4375 USD) must be paid?
  4. ocean5


    Not exactly.You must pay the full margin only to get over settlement hour which is at 3:45 pm est and to hold over days weeks etc.You can use intraday margin which is 400-500$ at ETH Globex starting from 4:15 pm est till 3:45 pm est next day- almost 24 hrs.
  5. Got it. Thank you.

    So then when one looks at the overseas/overnights and observes not infrequently, a volume increase at 3 AM ET, it may well be someone buying ES contracts at something less than $4375 USD/contract. Correct?

    If we move Stateside, then if one is flat at the end of RFTH for Day 1, then, if your broker permits it, one can buy a contract for Day 2 (after 4:15 PM ET) at something less than $4375 USD/contract. Correct?
  6. ocean5