Newbie to Futures: Margin relative to account size | Reviews of Brokers and Data Feeds


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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
cheers

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