How to calculate buying power?

[Skechers]

[Sheepishly asking as I'm supposed to know this, but I do for ES, not for MES]

Hello,

I'd like to calculate how much money is available to purchase a MES futures contract. I've read the contracts cost approx $500 (i.e. 1/10th the cost of ES).

However on the chart the price is approx $3,800.- not $500.-

I'd like to scale in/out based on my buying power.

My simple calculation is cash balance / $500 for MES. However I'd like to be more precise about that.

What would I do to calculate the buying power?

Many Thanks, Caesar.

[NinjaTrader_Angelica]

Hello Skechers,

Thank you for your post.

Buying Power will show $0 in the platform for NinjaTrader Brokerage accounts, because Buying Power = your margin account value, but since in futures the whole value of your account is leveraged for margin you simply refer to the Cash Value instead.

The margins needed for each contract depend on the broker that you are using. If your brokerage account is held with NinjaTrader, please email [email protected] for additional information regarding margin requirements.

Let us know if there's any questions.

[Skechers]

Hello Angela,

So if I have Cash Value = $1,000 I can buy ($1000 - maintenance margin ) / Close contracts?

Many Thanks, Caesar.

[Skechers]

Hello,

I've not seen a response to this.

Take MES as an example. I'm confused by the margin requirement being $50, the close price being $3,400.- but when I buy MES my cash value only drops a little. My Buying Power is 0.

Is there a reference page?

Many Thanks, Caesar.

[NinjaTrader_Angelica]

Hello Skechers,

Margins for futures with NinjaTrader Brokerage can be seen in the link below:

https://ninjatrader.com/es/PDF/ninjatrader_futures_contract_details.pdf

Intraday Margin requirement of $50 per contract means that your account must have a minimum of $50 per contract in your account in order to be able to trade that contract.

For further information on margins and margins position management, please visit the following links:

• https://ninjatrader.com/blog/underst...tures-trading/
• https://ninjatrader.com/Margins-Position-Management

If your brokerage account is held with NinjaTrader, please email [email protected] for additional information regarding margin requirements.

[Skechers]

Hello Angela,

Could you confirm my understanding? Cash Value = $1,000 means I can buy ($1000 - maintenance margin ) / Close contracts?

But for MES what is the purchase price (is it Close / 10)?

Many Thanks, Caesar.

[NinjaTrader_Angelica]

Hello Skechers,

If your Cash value is $1,000 , you can buy a maximum of 20 MES contracts during the intraday hours.

A balance of $1000 would not sufficient to hold a position for initial margins.

[Skechers]

Many Thanks Angela!