Newbie to Futures: Margin relative to account size | Reviews of Brokers and Data Feeds - futures trading strategies, market news, trading charts and platforms

Reviews of Brokers and Data Feeds

Review and discuss futures brokers, their requirements and features, or ask questions about brokers and data feeds


Newbie to Futures: Margin relative to account size

  #12 (permalink)

Melbourne, Australia
Trading Experience: Beginner
Platform: Ninja Trader
Broker/Data: Ninjatrader Brokerage
Favorite Futures: Many
Posts: 88 since May 2012
Thanks: 66 given, 33 received

matthew28 View Post
Hi Sienna,
Also remember how much an ES contract is worth. The ES is currently at a value of about 2,000, with a big point value of $50 ($12.50 per tick). Therefore one contract of the ES is worth about $100,000. The same as a full size 100K forex contract ($10 per pip), or ten mini 10K contracts ($1 per pip), or 100 micro 1K contracts ($0.10 per pip). Think about how many contracts, or the value, you traded in your forex account. Sometimes people forget how large a futures contract is and trade far too much size. Apologies if stating the obvious.

yes, thanks matthew28,
I was confused about the initial margin that one has to put up. Did not realize, until recently, what you expressed so well above

Reply With Quote
The following user says Thank You to sienna for this post: