Span Margin / Overnight Margin

Discussion in 'Index Futures' started by tkupczyk, Aug 27, 2008.

  1. tkupczyk



    If I hold 10 Long ES contracts at 1300 and open a second position while the market is down near end of day and go short 10 ES @ 1290.

    Does Span Margin consider my net position to be zero for overnight margin requirements or will I need to post $4500 per contract?

    These trades are in subaccounts of one trading account and remain open until an offsetting trade is placed.

    At close of day i show a loss of $5000 but by opening the second position to hedge can I carry the trade overnight into the next session and buy time for the market to checkup?.

    Assuming I have sufficient cash in my account to cover the present loss and intraday margins. $15K and I do not have sufficient funds to carry overnight margins for 20 contracts and losses ($95K)

    How does SPAN Margin assess this same scenario with 10 ES Options to hedge the overnight risk. Seeing that Future Options are cash and not margined Would this be intracommodity for SPAN? It seems all brokers state they use SPAN but this scenario plays out with different margin requirements. Is there a central SPAN calculator one can use to verify the SPAN margin calculations?