Margin relief for futures spreads? - futures io
futures io futures trading



Margin relief for futures spreads?


Discussion in Brokers

Updated
      Top Posters
    1. looks_one drm7 with 1 posts (1 thanks)
    2. looks_two CannonTrading with 1 posts (1 thanks)
    3. looks_3 SMCJB with 1 posts (4 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
      Best Posters
    1. looks_one SMCJB with 4 thanks per post
    2. looks_two augustco with 2 thanks per post
    3. looks_3 drm7 with 1 thanks per post
    4. looks_4 CannonTrading with 1 thanks per post
    1. trending_up 2,225 views
    2. thumb_up 8 thanks given
    3. group 7 followers
    1. forum 6 posts
    2. attach_file 1 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Margin relief for futures spreads?

(login for full post details)
  #1 (permalink)
San Antonio Texas
 
Experience: Intermediate
Platform: Sierra Charts, TOS
Broker: Edge Clear, Rithmic
Trading: ES and Treasury Spreads
 
Posts: 102 since Nov 2016
Thanks: 50 given, 52 received

Has anyone heard of a broker that offers reduced margin requirements when doing futures pairs or spreads? I wanted to go long /RBH7 (RBOB Gas) and Short /CLH7 without having to pay full margin on both sides. I ended up putting the trade on using ETF's but really missed out on the leverage of futures. Thanks you any help.

Started this thread Reply With Quote

Journal Challenge February 2021 results:
Competing for $1500 in prizes from Topstep
looks_oneSBtrader82 's Trading Journalby SBtrader82
(173 thanks from 31 posts)
looks_twoJust BEING a Trader: Letting Go!!by iqgod
(120 thanks from 33 posts)
looks_3Wisdom is Emptinessby Mtype
(68 thanks from 25 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(35 thanks from 17 posts)
looks_5Journal for peanuts1956by peanuts1956
(23 thanks from 13 posts)
 
 
(login for full post details)
  #3 (permalink)
Gits (Hooglede) Belgium
 
Experience: Master
Platform: NinjaTrader, Proprietary,
Broker: Ninjabrokerage/IQfeed + Synthetic datafeed
Trading: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
 
rleplae's Avatar
 
Posts: 2,991 since Sep 2013
Thanks: 2,437 given, 5,801 received


I think it would be difficult to calculate any compensation on this pair, as it are two different instruments.
Within the same instrument it is already not easy.

Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #4 (permalink)
wisconsin
 
Experience: Intermediate
Platform: ninjatrader
Trading: ES,CL,TF,GC
 
Posts: 31 since Jun 2011
Thanks: 16 given, 20 received

This is not a timely response but you can find the info you're looking for at https://www.rjobrien.com/tools/margins. Search the NYMEX intercommodity spreads.

Reply With Quote
The following 2 users say Thank You to augustco for this post:
 
(login for full post details)
  #5 (permalink)
Virginia
 
 
Posts: 42 since Oct 2010
Thanks: 164 given, 41 received

Most FCMs will provide proper SPAN margin credits (which are all on the CME website, although you need to hunt around a bit for them). Advantage, Crossland, RJ O'Brien, Wedbush and AMP come to mind. There are also many introducing brokers that work with these FCMs that may be able to provide lower commissions. Optimus and Deep Discount Trading are two off the top of my head.

I have heard that Interactive Brokers and Ameritrade ThinkorSwim are NOT good at giving you proper SPAN margin credits.

Reply With Quote
The following user says Thank You to drm7 for this post:
 
(login for full post details)
  #6 (permalink)
 
 
CannonTrading's Avatar
 
Posts: 175 since Mar 2013
Thanks: 51 given, 143 received


Futuresnoob View Post
Has anyone heard of a broker that offers reduced margin requirements when doing futures pairs or spreads? I wanted to go long /RBH7 (RBOB Gas) and Short /CLH7 without having to pay full margin on both sides. I ended up putting the trade on using ETF's but really missed out on the leverage of futures. Thanks you any help.

We offer exchange minimum margins for outrights and future spreads.

The current outright margin for crude is $2640 and for RBOB is $4070 ( as of Sept. 5th 2017)
the margin for the spread is: $3137

We have a built in margin calculator in our free platform E-Futures Int'l

PM with any questions about Cannon Trading (800) 454-9572 (310) 859-9572. Trading commodity futures, forex and options involves substantial risk of loss. The recommendations contained in this post are of opinion only and do not guarantee any profits. These are risky markets and only risk capital should be used. Past performance is not necessarily indicative of future results.
Follow me on Twitter Reply With Quote
The following user says Thank You to CannonTrading for this post:
 
(login for full post details)
  #7 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 3,970 since Dec 2013
Thanks: 3,264 given, 7,783 received


Futuresnoob View Post
Has anyone heard of a broker that offers reduced margin requirements when doing futures pairs or spreads? I wanted to go long /RBH7 (RBOB Gas) and Short /CLH7 without having to pay full margin on both sides. I ended up putting the trade on using ETF's but really missed out on the leverage of futures. Thanks you any help.

Old post I know, but this is called a Gasoline Crack Spread, or a RBOB crack. It is tradeable on Globex (aka NYMEX/CME) as a spread with no leg risk.

Since CL is a land locked Oklahoma crude, while RBOB is a New York Harbor ("NYH") delivered Gasoline Feedstock contact, some people look at Brent-RBOB cracks as well as/instead of CL/RBOB cracks. These cracks are offered on both Globex and ICE, but the limited liquidity they have seems to be on ICE. Unfortunately RBOB appears to be a dying contract in general.


Ilanlm View Post
We offer exchange minimum margins for outrights and future spreads.

The current outright margin for crude is $2640 and for RBOB is $4070 ( as of Sept. 5th 2017)
the margin for the spread is: $3137

We have a built in margin calculator in our free platform E-Futures Int'l

My first reaction was $3137 implies that the crack is more volatile than crude outright, which as volatile as RBOB has been, seems illogical. So I checked the CME website, which unless I'm missing something implies a lot less.


Reply With Quote
The following 4 users say Thank You to SMCJB for this post:


futures io Trading Community Trading Reviews and Vendors Brokers > Margin relief for futures spreads?


Last Updated on September 11, 2017


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1500 prizes from Topstep!

February
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
 

Call Option Buying: The New Pain Trade? w/Carley Garner

Elite only
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts