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Emini - Cash Settlement Question

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Trading Experience: Intermediate
Platform: Ninja/TradeStation/TOS
Broker/Data: Tradestation, AMP
Favorite Futures: YM
desitrader's Avatar
Posts: 27 since Oct 2011
Thanks: 16 given, 22 received

wldman View Post
What you are describing is a daily mark to market. Your "new" price in that scenario would be your marked price, not your executed short price.

One thing to consider. Are you intending to swing trade over the weekend? If that is not a specific strategy be aware that the unhedged risk you are taking could hurt you for real. I will not carry an ES futures position over the weekend like I used to.

But yeah, what you lose or make on the mark to market establishes the mark as your new price. Effectively the mark takes or makes and you trade that cost basis the next session. If you are positioning or swinging with futures you might benefit from minding the position P/L based on your initial entry.


Thank you Dan!

I am doing this only to stay neutral/hedge over weekends against my longs in index fund etfs. With market heating up, i want to my overall portfolio movement to be close to 0, no matter if market gaps up or down over weekends.

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