Futures Margin Explained

[@daveaj4477]

Holy smokes, this is literally the best explanation of Futures margin ever. Jeez! Much respect!

[@deuceaces8114]

This video is by far the best out there when it comes to futures margin, took me a couple weeks to find it, but it made everything crystal clear that other people on youtube could not do or bothered to do.

[@grticecream]

Best explanation. EVen brokers don't explain this as clear as you did. They just define terms and don't actually explain anything like you did

[@TradeProAcademy]

We are happy to hear that this video helped you. Stay tuned for more valuable trading content!

[@omida995]

This was the most clear ever explained video .

[@aaron_3oh3]

This was an incredibly clear and informative explanation of margin requirements! Thank you for this! 😃

[@TradeProAcademy]

Great to hear that you found the explanation clear and informative!. Stay tuned for more!

[@shawnclark732]

Thanks for finally explaining this. Even the brokers don’t seem to explain it fully.

[@TradeProAcademy]

Thanks for watching. Be sure to check out our other trading content!

[@fogk7613]

its the system, dont trust brokers they want your money too, they just there for u to trade w. they aint your friends.

[@abtineshraghi3866]

You are a legend for this man, even the brokers wouldn’t be able to explain it so detailed and simple like this

[@Gregoz987]

Truth, I have to go through 10 bad videos for every good one video. This is a great video! I got to say something other than video.

[@reuben3454]

Great presentation. Very informative and helpful. Thanks 🙏

[@manaking2176]

Finally an explanation of futures margin for the layman. Thank you.

[@TradeProAcademy]

Thanks for watching. Don't forget to check out our other futures trading content :)

[@cobianemmanuel]

thank you so much for this explanation!!

[@mikemiller8176]

Excellent explanation. Thank you! Good trading from the UK.

[@captainAUBS]

Got a new sub thanks for the info in the video

[@tacousa87]

Great info sir i am new to futures traders i am going to fallow you

[@kevalvichare4759]

Wooo what a great & simple explanation sir, doubts are getting clearer.

[@MultiDimension_]

Great video thank you

[@arnolddezilva4388]

Amazing work brother

[@t-raidenthunderbolt3388]

You explained this sooooooo well! Thanks brother!!!

[@FNMarketMaven]

Great job explaining this and thank you! I'll be subscribing

[@TradeProAcademy]

We are happy to hear that you found value in our video. Stay tuned for more!

[@joem8889]

finally, the inital value makes sense

[@benchavez2056]

Great video you are an excellent teacher. Thank you.

[@XTRADERXNYC]

Excellent breakdown

[@alcifrerdewich2323]

dantastic video.. what is your opinion about have $1600 for intraday NQ, $1000 for marging and 600 for cushion?

[@JamieTheApe]

Great video. Thanks.

[@Kk-iw4ck]

Hello again hope you are doing well. I can’t seem to find this answer anywhere wondering if anyone can help . Do I need the full maintenance margin when Selling options on es? I know if trading and I want to hold it overnight I do but what about selling naked ? What about selling spreads ? Thank you

[@SHIRLEYdIXON-y3c]

WOW THANK YOU!!!

[@hilhil1811]

Golden ! Thankyou

[@TradeProAcademy]

Thank you for watching!

[@LAXLAKERS2010]

To make sure I understand this, initial margin and maintenance margin doesn’t apply to someone who plans on closing out out their positions before the market closes for the day?

[@shanecreighton9674]

thanks

[@andriyaniliev3344]

Thank you very much! I would like to ask something because my English is not very good. For example, if I only have $500 and I open a trade with one contract of S&P 500, when will it be liquidated?

[@TrakouriSanders-o6x]

so what i learned about the maintenance margin is that i just need to make sure my ass out the market before 5pm to not have to worry about the maintenance margin

[@JN-gi6bf]

Excellent video. It would be nice to include e-mini S&P500 options discussion. Thank you.

[@PrimePina]

The video was extremely informative and everything i was looking for except for one thing. If let’s say i want to trade MNQ on tradovate which has a Day margin of $50 per contract and an initial margin of about 1300 what exactly does that mean for me? (Also the account size is $500) and let’s say i jump in a trade with one contract and it drops 1 tick and end up losing 5 dollars what does that do to the margin. Please help im confused

[@rashadheyward]

since your day trade margin is 50 dollars, you only need 50 dollars for the position. so 500 dollars will be enough to take the trade. so in other words the trade would have to go against you 90 points (450 dollars) to blow your account. the initial margin is only require if you hold a trade from 5p-6p est.

[@PrimePina]

@@rashadheyward Ahh i understand now thank you 🙏🏼

[@andriyaniliev3344]

@@rashadheyward hello! my english is not good and that's why i need to ask just in case, 5p-6p est but only the weekend?

[@exsxpx1]

good stuff

[@TradeProAcademy]

Thank you for watching!

[@wulfW]

This means that "intraday margin" (the much lower amount most brokers offer) can apply even if I'm trading late at night like 9 or 10 PM EST? Since I'm used to stocks I thought any overnight period would mean holding after 4PM EST (aka re-opening 9:30AM EST).

[@iamryron]

Great content brother

[@TradeProAcademy]

Thank you for watching. Stay tuned for more!

[@1MillionareMentor]

I too would like to know the answer to this question. One question, let’s say I started my account with $5k and I bought one ES for $50 and margin is $400. So what I want to confirm is even if I don’t put a stop loss and the trade went against me , in that case my max loss will be $400 from $50 (hoping they liquidate me automatically) or more than that? Just want to confirm in worst case scenario can I still walk out with my rest of the $4600 from the $5k acc? Or No. If you don't have a SL, my max loss is account balance minus margin ($450). So be able to lose $4550? Just confused on this.

[@TradeProAcademy]

When you get long or short futures, you don't buy or sell them like options. There is no premium. You start the position flat, this is why there is a margin. You will lose X amount or win X amount based on the points moved for you or against you. If you don't have a stop and you lose $4612.5 (each tick is $12.5) you will be liquidated out of the position because you no longer have $400 margin to trade 1 contract.

[@kingsleynkrumah4762]

Hey sir, which platform and broker can i used on demo for futures for free for more understanding of the whole system? Thanks

[@craig8211]

Good video! I noticed there was no explanation between initial margin and maintenace margin. As well as what happens if a trader has a margin call. Peace

[@rombusworkmoney22]

I second that question.

[@shawnclark732]

He explained it perfectly

[@billydanzz]

So for clarification: Does the "initial margin" for a trade held past 5pm into the market close period get reduced back down to the lower, intraday (day) margin requirement after 6:00pm? Or does the "maintenance margin" requirement go into effect after 6:00pm, since a trade will now be carried more than one, i.e., multiple days? This wasn't specifically mentioned, and I don't want to make any assumptions.

[@DMaybach93]

I’m slightly confused, if you lose money on a trade. Are you expected to pay back the small margin amount or the actual price of the contract or 11k?

[@TradeProAcademy]

Futures trades will provide you with either a win or a loss when you exit the trade based on the asset you trade. For example, if you trade ES, 1 point is $50. Each point won is $50. The margin is the requirement you have in the account to trade the asset itself.

[@DMaybach93]

@@TradeProAcademy lol I figured that out through experience. Loaded 1k and got 300 left 😂😂😂😂😂

[@toonflix3757]

can i ask what broker are you using to trade futures for e - mini or micros?

[@TradeProAcademy]

AMP Futures.

[@TradeProAcademy]

@Future Trader Hello, thank you for commenting and watching our video! Sierra charts is just a charting platform, they are not a broker. The margins depend on the broker you decide to use and that is available in your country. AMP is a good one, with low margin and commission, but its' almost too low for new traders and margin isn't something you should use when you don't have experience, it amplifies gains and/or losses.

[@TradeProAcademy]

@Future Trader We are not 100% sure if they accept sweeden residents. You will need to contact them to confirm.

[@superflashone436]

have a question. I am not a future trader. Can clarify this one please?? is buying power settled immediately for future trading??? I am confused with stock trading, which I wait T+2 days for cash settlement after sell.

[@TradeProAcademy]

Hey! You don't have to wait multiple days.

[@shannonpeacock3509]

In what scenario do you end up owning a brokerage money? Wouldn’t your position be liquidated when your margin no longer covers your position? Sorry, I’m still confused

[@mombux]

I traded Gold last night on tradovate and while My forex account was in profits my futures were in huge loss and totally different price probably this video explains why

[@carmellejean-paul4334]

Hi. I hope this isn’t a stupid question, but would still like a little more clarity. Right now the ES is $4141.50. If I wanted to go long on just one contract are you saying that AMP will still allow me to buy that contract for just $400 day trading margin (based on recoding of this video) or are you saying that I can buy the contract for the $4141.50 + $400 margin which is still much cheaper than the notional value again if solely day trading?

[@TradeProAcademy]

Hey! There's no stupid questions when learning, thanks for the question. What margin allows you to do is trade the singular contract with $400 in your account (this isn’t recommended). This has nothing to do with the price of the underlying. If the underlying changes that just changes the leverage you have available. If you drop under $400 and you have 1 contract, AMP will close out the position because you no long have the buying power to sustain the contract.

[@carmellejean-paul4334]

@@TradeProAcademy thank you for your response and kindness in answering!

[@TradeProAcademy]

@@carmellejean-paul4334 No problem. Happy Trading!

[@michaelporricelli9488]

Good vid. How come when I trade options my buying power is reduced buy the amount of the trade. So you can only have a limited amount of trades based on the balance in your account. How come that doesn’t happen on futures trade. You can trade all day with a very small balance. Why is that.

[@TradeProAcademy]

Hi Michael, thanks for commenting. It happens with futures too, based on the margin. For example, if 1 contract is a $1000 margin and you have a $1000 account you can only trade 1 contract at a time.

[@michaelporricelli9488]

@@TradeProAcademy 1 apt a time. but I can do 10 round rips with that 1000, correct?

[@TradeProAcademy]

@@michaelporricelli9488 Hi Michael, I'm not sure what you mean by this. You can trade 1 contract within margin as much as you want as long as you don't go under the margin

[@angelsantillan2115]

As an example, if I go with E-mini s&p500, I require $400 dollars to trade. If I have $500 in my account, assuming I don't go below the $400 mark, how many contracts can I trade at a time with $500 in my account? just 1 contract?

[@TradeProAcademy]

You can only trade 1 contract at a time. I wouldn't use only $500 to trade though. 2 points to the negative and you'll get blown out. Look into micros, but still would have a larger account.

[@Still_Bruceillest]

I was wondering what factors make the market move during the closure window if everyone can't trade during that time?

[@TradeProAcademy]

Supply and demand changes due to news. For example, SP500 trades at price X, and out of no where China slaps a 700000% export fee on all goods to US, Biden responds with 10000000%. No one wants to sell or buy X anymore, but 100 points below X, so thats' where the market opens, at the new supply/demand level. Make sense? Extreme example obviously lol. - G

[@Still_Bruceillest]

@@TradeProAcademy Thanks G for the explanation that definitely cleared it up for me. It's always a pleasure learning from TPA.

[@KRIPSYNODUTS]

One question, let’s say I started my account with $5k and I bought one ES for $50 and margin is $400. So what I want to confirm is even if I don’t put a stop loss and the trade went against me , in that case my max loss will be $400 from $50 (hoping they liquidate me automatically) or more than that? Just want to confirm in worst case scenario can I still walk out with my rest of the $4600 from the $5k acc? Or No. If you don't have a SL, my max loss is account balance minus margin ($450). So be able to lose $4550? Just confused on this.

[@peterpeter8217]

Your loss can be way more then the 400. The 400 is set by your broker to be the minimum u need in your account to trade 1 ES contract. Most brokers will contact you when the position is turning heavily against you and the size of your account is getting dangerous. It also depends if your position is still open when the maintenance close is there...they will liquidate your position ( because u don't have the maintenance funds in your account for 1 ES contract ) and u will have to pay an extra fee to your broker for doing so. If u close your position and u will have less then 400 left on your account, u need to make an deposit because now u can't trade 1 ES contract anymore ( 400 minimum ). Or u need to start trading the MES. I hope this answers your question.

[@shelbyhaiketic4212]

I don’t understand I’m going to give an example with horrible risk management just so I can’t get an idea on how this works. Let’s say I’m trading nq which has a day trade margin of 1000. I have a 10k personal account, I’m buying 5 contracts per trade. I have automatic stops at 10 points below market. How many times would I have to hit stoploss in a row for my account to get liquidated ? Please someone respond this is driving me crazy. I’ve already watched like 10 different videos. I simply cannot understand it

[@kimmurray3818]

great video, however the video isnt clear

[@boristsankov8276]

Are you Bulgarian by any chance?

[@andriyaniliev3344]

Аз съм

[@AndyTN64]

to be safe only trade with margins 20% of your account.

[@adelbenaida5597]

oooo

[@dipakghosh3241]

Very helpful.

[@Beyza_nur_merve19]

Trading futures for 9 months and i was thinking i need to have 5x $11k = $55k in my account to trade 5 mini ES contracts until now. I feel so stupid