Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
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 for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Do I need to meet Initial Margin Requirements for Day Trading?
Complete Noob to Futures trading, although I have a few years experience in Forex and BTC trading. I had a question on some margin requirements a broker I was looking at. I'm looking at Generic Trade(generictrade(.)com/commissions/margins/) and their margin requirements, and they have an initial margin of X amount of $ and a "standard day trade margin" of y amount of $, typically much less than the initial margin requirement. Does this mean that my account must have atleast the sum of the initial margin plus the standard day trading margin to open a trade? Or is the initial margin waived so long as I open and close the trade on the same day during the trading period?
Can you help answer these questions from other members on NexusFi?
Typically the DT margins are what apply during all hours, while the Exchange specified (Init/Maint) margin levels are required if you hold you positions through the daily market close (main session, 4.00 CST for most US products). Your broker likely requires you to have the Init/Maint margin available from about 15 mins before market close or to flatten your position.
AFAIK, DT margins are what applies as soon as electronic post-market trading re-opens, so DT margins applies for like 23 hours each day. At least this is how AMP does it.
The various margins are not cumulative, rather it is the highest number that would be required.
EDIT: to be clear re your question: No, you do not need to meet the Init. Margin req as long as you close before market close.