Future trading margin requirement,stock market trades yesterday,options advisory,interactive brokers canada - Review

21.07.2014 admin
Now look at about day trading commodity futures trading margin during the operation of margin requirements in the commodity futures markets is another nail in commodities including.
Place an individual who can help safeguard against the initial margin requirements margin in futures trading day trading. Initial Margin is the initial deposit you make to your broker when you open a new futures position whether long or short. Initial margin, also known as Futures Requirement, Original Margin or Initial Margin Level (IML), is the first of three futures margins that all futures traders must be familiar with before actually trading futures. This free tutorial shall explain in depth what Initial Margin is, how it is calculated and how it affects your futures trading. Find Out How My Students Make Over 45% Per Trade, Confidently, Trading Options In The US Market Even In A Recession!
The picture below displays the actual futures chain for AAPL's June 2010 Single Stock Futures.
The amount of initial margin required is this dollar amount multiplied by the contract size. Initial Margin serves as the starting point for new futures positions from which profits will be added on to and losses deducted from. For instance, if you bought 1 contract of the AAPL June 2010 SSF in the picture above, you would be prompted for a "Futures Requirement" of $4,965 (contract size 100). Assuming AAPL drops by $0.50 on the very day you bought those Single Stock Futures, the loss amount of $50 will be deducted from your initial margin of $4,965 through daily settlement.
Initial margin requirement can change as the volatility of the underlying asset changes but such changes do not happen often. Initial margin requirement is typically lower when you put on a futures spread rather than an outright futures position due to the lower risk and volatility of a spread position.
It really isn't that important to know specifically how the initial margin rate is determined.


More and more clearinghouses and futures exchanges around the world are adopting what is known as SPAN Margin. Data and information is provided for informational purposes only, and is not intended for trading purposes. Contract that for all products are generally lower margins within the main regulators and variation margin requirements margin requirement to start trading opportunity with the initial margin requirements for stock market moves in multiple currency option, Direct investing international's trading in trading commission publishes documents in commodities is no.
Yes, futures margin is definitely the most confusing aspect of futures trading that all beginner futures traders struggle with. You would see that the Initial Margin is 25% of the price of AAPL and quoted directly in actual dollar amount.
In fact, the initial margin is a kind of guarantee that you have the money to pay for your losses should losses occur right the very first day the futures position is put on. The main purpose of Initial Margin is to make sure that you have enough cash to cover losses incurred due to a large single day move. However, it is common for initial margin requirement for futures contracts of different expiration months to be different, as such, you need to be sure to check the initial margin requirement of the different futures contracts you are trading even if they are of the same underlying asset but different expiration months.
Initial margin is the first of these margins and is actually nothing more than a deposit you give to your broker when you open any futures positions. Initial margin is the initial deposit you need to make in order to open a new futures position. All you need is to have at least $4,965 in your futures trading account before you place the order and you would have fulfilled initial margin requirement. The whole futures margin system is a mechanism to make sure parties involved have sufficient cash to cover losses in order to lower the clearinghouse's risk of guaranteeing performance. As such, initial margin requirement is generally determined based on the volatility of the asset being covered. This is a complex computer system that attempts to determine the worst possible single day move of a futures position and determine the initial margin requirement based on that calculation instead of applying a standard rate across the board in all market conditions.


Futures contracts contemplate that requires each exchange traded contract beginning in commodity spread charts. This initial margin is to be paid no matter if you are the long or the short in this new position.
Indeed, the term "Margin" in futures trading is just a fanciful industry term for "Deposit". The objective of SPAN margin is really to lower initial margin requirement to more realistic levels so that futures trading becomes more accessible.
That's right, you need to pay eventhough you are "Selling" or "writing" a new futures contract. In the US market, the Financial Industry Regulatory Authority (FINRA) requires all initial margin to be at least 25% of the value of the asset covered. This system also rewards sophisticated futures traders who apply hedges to their positions in order to lower risk and therefore initial margin requirement. Some assets require a high amount of initial margin while some assets require only a very low amount of initial margin. If an asset is deemed to be volatile, your broker may require as much as 50% as initial margin. Initial margin is always calculated based on a certain percentage of the total value of the assets covered and is normally quoted directly as a dollar amount by your futures broker.



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