In futures trading, depending on the capital in your account, traders can obtain lower margin requirements than other types of securities. Because of this traders can have a greater level of leverage. The lower the margin, especially Day Trading Margins, the higher the leverage and riskier the trade. Leverage can work for you as well as against you, it magnifies gains as well as losses.
Over Night Margins (or performance bonds) are set by the futures exchange. Initial margin is the amount of money you need to have in your account to establish and HOLD a position past the close of any given daily session. This margin is set by the exchange and can change at any give time.
Contract Specs for CME Group markets can be found at our Resource Center
Day Trade Margins, in many cases, are set by the FCM or brokerage firm. These can be in place for positions that are opened and closed in the SAME trading session. Day trade margins will magnify the risk per capital of a trade.Use day trade margins gingerly and wisely. Day trade margins are also subject to change based on market conditions. Traders experience and account size are also taken into consideration when determining day trading margins.
The following schedule is not appropriate for all traders. Please contact your customer service representative for more information.
|Futures Market||Symbol||Day Trade Margin|
|New Zealand Dollar||6N||$1,000|
|Emicro Australian Dollar||M6A||$100|
|Emicro British Pound||M6B||$100|
|Emicro Euro FX||M6E||$100|
|Crude Crude (WTI)||CL||$1,000|
|Emini Crude Oil||QM||$500|
|Interest Rate Futures|
|Treasury Notes: 10 Year||ZN||$500|
|Treasury Notes: 5 Year||ZF||$400|
|Stock Index Futures|
|Emini Mid_Cap S&P||EMD||$500|
|Emicro Gold Futures||MGC||$100|
|Soy Bean Oil||ZL||$750|