Rule Question

Discussion in 'Index Futures' started by Driog, Dec 29, 2008.

  1. Driog


    Is there a 3 day settlement rule with futures like there is stocks? Ive looked for this answer but with no luck.

  2. no settlement rule, its real time settle. Trade as much as you want just be careful
  3. Futures contracts settle every day, based upon "mark to market".
  4. Driog


    thank you for the responses. Let me make sure i have this correct then. Say I have enough to buy 1 contract of the YM, i could buy, sell, and then buy and sell, continuously throughout the day?

  5. Yes, so long as you maintain enough equity to satisfy margin requirements. Then at the end of the day, all accounts are settled. (Actually, the FCMs settle amongst themselves, then each FCM deals with the accounts of its customers.)
  6. Driog


    thanks for the good replies!
  7. chartman


    The Exchange clearing house clear and settle the open positions for the clearing members. The clearing members then settle the open positions with their customers/clients (public, CTA, CPO, IB, floor traders, etc). These clearing/settlement are normally done daily at the end of day but the clearing house can require additional deposits for unusal off-balances intraday. The clearing house takes the opposite position of every open interest. Clearing members only have to deposit funds with the clearing house for their off-balance open positions. For all balance open positions and excess over exchange minimum margin, the clearing members keep in house for interest income. There is no limit on the number of intraday trades by a trader as long as one maintains proper margin. The brokerage keeps a close watch intraday on open position margin. You can receive a margin call intraday or have your position closed due to lack of margin.