Question about futures margin.

Discussion in 'Index Futures' started by Vercingetorix, Aug 23, 2006.

  1. If you use up your margin to open a position and then close it out in the same day can you open another position again that same day or do you have to wait for the next trading day? As I understand it with equities you have to wait until the next day when you use up your buying power, but I haven't read any mention of that when it comes to futures. I'm assuming you can only use your margin purchasing power once a day, is that correct?

    Thanks, I'm still learning about futures.
  2. WinDiff


    To open a position you need the be able to cover your initial margin obligations. If there is no money or the equivalent collateral in your account no broker in the world will allow you open up a trade, unless the broker is your dad, of course

    Still keeping your day job?

  3. That wasn't my question.

    Let's say you have 5k cash and your broker's margin rate for YM is 1k for a day trade. You open and close 5 contracts in one day and let's assume you didn't make a profit/loss and still have 5k. My question is can you open another position during that same trading day or do you have to wait for the next trading day...
  4. obviously yes.
  5. Thanks for the answer, from what I understand of margin on equities this is not the case so I wasn't sure.

  6. it's the case for whatever instrument u trade. the only limitation is determined by the pdt rule for acct below $25k [equities/options only] where u can't open and close more than 3 day trades in 5biz days.
    u might have gotten confused with usin' funds gained from your profits that infact are not materially avaliable for margins 'till 3rd biz day.
  7. Surdo


    Futures Buying Power is updated in real time.
    You can "Re use" it 100's of times a day!
    There is no settlement period as they are cash settled every night. The actual cash gets journaled in/out at night.