What is the buying power in this situation?

Discussion in 'Trading' started by bidask, Feb 15, 2007.

  1. bidask

    bidask

    Say a guy has a $1 million account and he puts it all into treasuries. Now he wants to trade ES futures. What is the maximum number of contracts that he can buy?
     
  2. Jaime

    Jaime

    Based on the assumption that they will let him use 70% of the treasuries for margin (conservative) then 200 contracts overnight based on ExMin margin. For daytrading 1000 contracts
     
  3. bidask

    bidask

    thanks. does this mean that the margin requirements for the futures trading is the same as if you were trading with a $700K account?

    any additional restrictions?
     
  4. Maximum contracts he could buy or safely should buy?

    1 contract ES mini :
    1460 points X $50 = $73,000 market exposure

    200 contracts X $73,000 = $14,600,000

    1000 contracts X $73,000 = $73,000,000

    and whatever % (1-25%?) of that he is comfortable losing if he is long and can't get out, when the market panic-program sells, with or without a reason again.
     
  5. bidask

    bidask

    i just want to know how the margin requirements work when the account is invested in treasuries.