Which way is the Futures Margin of error?
I'm new to day trading & NT, but not trading in general & I have a few questions about some rules & the platform. The most important questions for me at this time are "pertaining to the Futures Margin rule in place, how does it work exactly?" I've got the basics of it down(I guess), but my problem is that I work a fulltime day job & I want to trade after work in my spare time, going by the Margin rule, it states that after hours trading requires an Initial Margin(& what's the amount for ES futures, just to make sure that I'm on the right page?), but since I'm not trading(maybe logging on & looking) during normal business hours, does that rule still apply to my situation or does my normal after work hrs become my actual trading hrs? Also, I'm not looking to hold any contracts past my trading cycle(2 - 4 hrs), does that help or hurt my situation? Sorry if I didn't post this in the right area of the forum.
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When the three margin conditions apply, and exceptions:
(Example times applicable to CME products with markets closed between 4:00 PM and 5:00 PM CT, excluding holidays. All times are US Central Time.)
Intraday Margin
The broker Intraday Margin requirement applies to open positions during the current intraday session, between the 5:00 PM session start and the Intraday Margin end at 3:45 PM on the next day. Intraday Margin applies during this time period to new positions opened during the current session, and to existing open positions carried forward from a prior session.
Initial Margin
The exchange Initial Margin requirement is effective between the 3:45 PM Intraday Margin end time and the CME session end fifteen minutes later at 4:00 PM, and is applicable to an open position if there is a trade during the current session in the same futures product as the open position.
When the open position during this time period is an existing position carried forward from a prior session, and there was no trade in the same futures product during the current session, then Initial Margin does not apply. Instead, Maintenance Margin applies.
Maintenance Margin
The exchange Maintenance Margin requirement is effective between the 3:45 PM Intraday Margin end time and the CME session end fifteen minutes later at 4:00 PM, and is applicable only to an existing open position carried forward from a prior session, and only if there is no trade in that same futures product during the current session.
When the open position during this time period is an existing position carried forward from a prior session, and there was a trade in the same futures product during the current session, then Maintenance Margin does not apply. Instead, Initial Margin applies.
Exceptions
The exchange or broker may change margin requirements at any time, without notice. Exceptional margin changes are typically due to volatile market conditions, anticipated or actual, and the broker determining that higher margin is required for additional protection. At NinjaTrader, notice of exceptional margin changes are posted at the Order Desk Updates web page:
Unfortunately, frequently the margin update information posted there is incomplete, contradictory, or otherwise unclear. For example, the October 28 margin update defines regular trading hours as being 8:30 am CT to 3:15 pm CT, which is incorrect unless they are changing hours as well as margin. Normally, regular trading hours end at 3:45 pm CT.
Additional reference:
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Thank you Lancer for posting these explanations in regards to margin.
For any further clarification on margin and you have your trading account with the NinjaTrader brokerage, please contact the NinjaTrader brokerage team.
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