Holding a position overnight - Traders Hideout | futures io social day trading
futures io futures trading


Holding a position overnight
Updated: Views / Replies:5,950 / 17
Created: by Delirious Attachments:0

Welcome to futures io.

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

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

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

Reply
 
Thread Tools Search this Thread
 

Holding a position overnight

  #1 (permalink)
Trading Apprentice
Garden Grove, CA, USA
 
Futures Experience: Beginner
Platform: OEC
Favorite Futures: ES, 6E
 
Delirious's Avatar
 
Posts: 8 since Apr 2014
Thanks: 8 given, 1 received

Holding a position overnight

Hello All,
If my question was answered before then I apologize, please re-direct me to that post, if possible.

I am a new trader..I started day-trading Futures and Futures Forex.
I was always taught to close my position before the end of the day, or "else"! So my question is: if I hold my position overnight or for 2 days, I expect to be "punished" by my broker.
What exactly the broker's reaction will be if I hold my position (say EUR/USD) from Friday night to Monday or Tuesday?
Let say I have $3000 in my account.

Thanks

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Cedar Rapids, iowa
 
Futures Experience: Intermediate
Platform: Ninjatrader
Broker/Data: Ninjatrader - Continuum
Favorite Futures: 6E, TF, 6J
 
Tasker_182's Avatar
 
Posts: 626 since Aug 2009
Thanks: 426 given, 1,126 received



Delirious View Post
Hello All,
If my question was answered before then I apologize, please re-direct me to that post, if possible.

I am a new trader..I started day-trading Futures and Futures Forex.
I was always taught to close my position before the end of the day, or "else"! So my question is: if I hold my position overnight or for 2 days, I expect to be "punished" by my broker.
What exactly the broker's reaction will be if I hold my position (say EUR/USD) from Friday night to Monday or Tuesday?
Let say I have $3000 in my account.

Thanks

I cannot address the forex side but on the futures side, what is required is a higher level of margin. You really need to understand what your brokers requirements are before holding anything.

"Money is better than poverty, if only for financial reasons." - Woody Allen
Reply With Quote
The following user says Thank You to Tasker_182 for this post:
 
  #4 (permalink)
Trading Apprentice
Garden Grove, CA, USA
 
Futures Experience: Beginner
Platform: OEC
Favorite Futures: ES, 6E
 
Delirious's Avatar
 
Posts: 8 since Apr 2014
Thanks: 8 given, 1 received


Tasker_182 View Post
I cannot address the forex side but on the futures side, what is required is a higher level of margin. You really need to understand what your brokers requirements are before holding anything.

Thank you Tasker.

Reply With Quote
 
  #5 (permalink)
Elite Member
Luxembourg
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: IB / Kinetick
Favorite Futures: ZN
 
Fadi's Avatar
 
Posts: 482 since Apr 2012
Thanks: 650 given, 625 received

Do you mean you are trading the 6E future contract on the GLOBEX exchange?

If so, to hold 1x contract overnight you need at least $2,250 in your trading account.
This is usually set by the exchange itself...

So with your $3,000 in account you can hold 1x 6E contract; but you will be left with a very small margin of maneuver shall I say ($750) before they issue you a margin call.

$750 on 1x 6E means 60 ticks of price movement.
So any price change from let's say 1.3740 to 1.3800 will push you out of position!

Successful people will do what unsuccessful people won't or can't do!
Reply With Quote
The following 2 users say Thank You to Fadi for this post:
 
  #6 (permalink)
Trading Apprentice
Garden Grove, CA, USA
 
Futures Experience: Beginner
Platform: OEC
Favorite Futures: ES, 6E
 
Delirious's Avatar
 
Posts: 8 since Apr 2014
Thanks: 8 given, 1 received


Fadi View Post
Do you mean you are trading the 6E future contract on the GLOBEX exchange?

If so, to hold 1x contract overnight you need at least $2,250 in your trading account.
This is usually set by the exchange itself...

So with your $3,000 in account you can hold 1x 6E contract; but you will be left with a very small margin of maneuver shall I say ($750) before they issue you a margin call.

$750 on 1x 6E means 60 ticks of price movement.
So any price change from let's say 1.3740 to 1.3800 will push you out of position!

Thank you Fadi for your clear explanation.
Yes, I am trading the 6E Future.
So the $2,250 is to be in my account while I hold a position overnight. So if I hold it for, say, three days, that amount should be multiplied by 3? or it is just one amount until I move beyond the margin left in my account?

In an other word, with a $5000 account, it is impossible for a small trader like me to be a swing-trader that holds positions for days or a couple of weeks? correct?

Reply With Quote
 
  #7 (permalink)
Market Wizard
Switzerland
 
Futures Experience: Intermediate
Platform: Investor/RT
Broker/Data: IB / DTN
Favorite Futures: Futures
 
Posts: 4,130 since Feb 2012
Thanks: 3,791 given, 7,659 received
Forum Reputation: Legendary


Delirious View Post
In an other word, with a $5000 account, it is impossible for a small trader like me to be a swing-trader that holds positions for days or a couple of weeks? correct?

Depends really on your broker how the margins are set for overnight.
Interactive Brokers for example has a double margin for futures...
It can be crucial to not have the position liquidated at a bad price
in the last quarter of an hour before the future market closes.

For swing trading you might have a look at other products (derivatives)
that are not so strongly margin oriented.
Good trades!

GFIs1

Reply With Quote
The following user says Thank You to GFIs1 for this post:
 
  #8 (permalink)
Elite Member
Austin, TX
 
Futures Experience: Intermediate
Platform: F-16CM-50
Favorite Futures: JDAM
 
tturner86's Avatar
 
Posts: 5,784 since Sep 2013
Thanks: 9,849 given, 11,160 received
Forum Reputation: Legendary


Delirious View Post
Thank you Fadi for your clear explanation.
Yes, I am trading the 6E Future.
So the $2,250 is to be in my account while I hold a position overnight. So if I hold it for, say, three days, that amount should be multiplied by 3? or it is just one amount until I move beyond the margin left in my account?

In an other word, with a $5000 account, it is impossible for a small trader like me to be a swing-trader that holds positions for days or a couple of weeks? correct?

Look at the period of how long you want to hold. Say 3 days, then look at the average range for the last few weeks in 3 day periods. This will give you an idea of what kind of swings you may experience.

I would suggest somewhere in the area of $10-15K per contract. And my only bearing on that is what my broker told me. That would make the comfortable with us holding a position overnight. You can do it with less, but you need as much room as possible to allow your position to work. If not you will waste your money on a margin call.

Talk with your broker and I am sure they would be more then willing to help determine what you need to trade the way you are wanting.

Reply With Quote
The following user says Thank You to tturner86 for this post:
 
  #9 (permalink)
Elite Member
Austin, TX
 
Futures Experience: Master
Platform: ninjatrader, r-trader
Favorite Futures: CL, NG, TF, NQ, YM, GC, ES
 
liquidcci's Avatar
 
Posts: 862 since Jun 2011
Thanks: 609 given, 1,051 received

I personally would not hold position overnight on margin with futures. That is extremely conservative and may not be necessary. But crazy stuff can happen while you think your safely tucked away for a nights sleep. Even with a stop in place in can get jumped in thin overnight markets. You try to hold overnight position with 5k and you might wake up owing your broker money. If I need some leverage for overnight positions will use options because at least can cap your losses. Now day trading I can be aggressive with margin but even then I am usually over 5k per contract. Day has its dangers but nothing like overnight. One of the biggest mistakes you can make as a trader is undercapitalization. Leverage is a tool but must be used very wisely.

"The day I became a winning trader was the day it became boring. Daily losses no longer bother me and daily wins no longer excited me. Took years of pain and busting a few accounts before finally got my mind right. I survived the darkness within and now just chillax and let my black box do the work."

Last edited by liquidcci; May 14th, 2014 at 01:05 PM.
Reply With Quote
The following user says Thank You to liquidcci for this post:
 
  #10 (permalink)
Banned: trolling
NYC + NY / USA
 
Futures Experience: Advanced
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Favorite Futures: EMD, 6J, ZB
 
kronie's Avatar
 
Posts: 798 since Oct 2009
Thanks: 216 given, 498 received



liquidcci View Post
I personally would not hold position overnight on margin with futures. That is extremely conservative and may not be necessary. But crazy stuff can happen while you think your safely tucked away for a nights sleep. Even with a stop in place in can get jumped in thin overnight markets. You try to hold overnight position with 5k and you might wake up owing your broker money. If I need some leverage for overnight positions will use options because at least can cap your losses. Now day trading I can be aggressive with margin but even then I am usually over 5k per contract. Day has its dangers but nothing like overnight.

hey guys,

holding a position in the emini(s) overnight really comes down to the 15min window that the Globex shuts down to settle books. that 15min window is further expanded by a total of 1.5 hours until trading resumes and they open up the pipes for trades. on most contracts, isn't that 6pm EST or 5pm CST?

so really holding a position overnight might not be worth the problem, and an alternative would be to simply close before the end of session, and come back at the beginning of session (say, take your wife out to dinner and come back to the office over the garage) and re-establish the position.

that is a synthetic solution

Reply With Quote
The following 3 users say Thank You to kronie for this post:

Reply



futures io > > > Holding a position overnight

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Strategy Position and Account Position spinnybobo NinjaTrader 15 February 13th, 2015 10:00 PM
Holding period optimization. DayTrader1 Traders Hideout 5 August 28th, 2013 03:18 AM
NT7 and mirus overnight position balancing christo64 NinjaTrader 6 February 18th, 2013 12:36 PM
Contract Rollover: Adopt Real World Position and manage per previous position entry RM99 EasyLanguage Programming 3 May 30th, 2012 07:55 AM
Holding an outside account while working for Finance Crude Awakening Traders Hideout 3 March 21st, 2012 03:36 PM


All times are GMT -4. The time now is 08:43 PM.

Copyright © 2017 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
Page generated 2017-12-16 in 0.15 seconds with 19 queries on phoenix via your IP 54.160.245.121