Understanding Futures Margins
• Day trading margins or intra-day margins provide futures traders with leveraged buying power.
• Real time intra-day margining can result in a more efficient use of capital over similar cash or over the counter markets.
• As an example traders for a SPY ETF would need to trade hundreds of shares to match the notional value of just one E-mini S&P 500 futures contract.
• And once you liquidate a position your margin is immediately available to trade again.
• Day trade margins to trade micro E-mini S&P futures is commonly $50 per contract.
• Get the benefits of a pattern day trader with a fraction of the buy in.
• Remember leverage magnifies both gains and losses.
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Past performance is not indicative of future results. Derivatives Trading is not suitable for all investors.