Question regarding margin requirements

Discussion in 'Trading' started by habsfan50, Oct 6, 2008.

  1. habsfan50


    I am new to trading and I have been looking over the Interactive Brokers website on their margin requirements.
    To trade the E-mini S&P 500 the intraday initial is $5063. The overnight initial is $5063 and the overnight maintenance is $4050. Does this mean to hold one E-mini S&P 500 contract I need to have a minimum of $9113 in my account?

  2. 1) No.
    2) At a minimum, you would have to have the initial margin of $5063 per contract. A margin call would be triggered if the position went against you by ~82 ticks, i.e. a loss of $1025 per contract, reducing your equity per contract from $5063 to $4038, below the $4050 maintenance margin level.
    3) At that point, you can close out the position to avoid a margin call or satisfy the margin call by paying an amount of money ~equal to your paper-loss.