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Re: [amibroker] Re: OT: Initial Margin, Maintenance Margin


  • Date: Fri, 29 Jan 2010 17:58:06 +0100
  • From: reinsley <reinsley@xxxxxxxx>
  • Subject: Re: [amibroker] Re: OT: Initial Margin, Maintenance Margin

PureBytes Links

Trading Reference Links

Into your IB account, a line called Buying Power as a meaning I never 
found. I presume it's linked to leverage and volatility.

BR


Le 29/01/2010 16:53, Edward Pottasch a écrit :
>
>
> ok thanks guys. I have been trading futures but just wasn;t sure what
> the liquidation value would exactly be cause IB's explanation is
> somewhat confusing in my opinion
> rgds, Ed
>
>     ----- Original Message -----
>     *From:* reefbreak_sd <mailto:reefbreak_sd@xxxxxxxxx>
>     *To:* amibroker@xxxxxxxxxxxxxxx <mailto:amibroker@xxxxxxxxxxxxxxx>
>     *Sent:* Friday, January 29, 2010 4:42 PM
>     *Subject:* [amibroker] Re: OT: Initial Margin, Maintenance Margin
>
>     It is important to note that what you are actually doing is taking a
>     $54,500 position (1090 * 50 = 54500) the $2250 margin is just a 4%
>     down payment. You are responsible for the full amount (higher or
>     lower) when you eventually close the position. If you decide to hold
>     overnight, the margin is doubled.
>
>     Most (all?) trading systems have periods where many trades in a row
>     go against you. I'd recommend $25000 MINIMUM in your account to
>     trade one EMini $50000 is better. Finally, even if you are
>     successful, your largest drawdown is in the future.
>
>     --- In amibroker@xxxxxxxxxxxxxxx
>     <mailto:amibroker%40yahoogroups.com>, James <jamesmemphis@xxx> wrote:
>      >
>      > To place the initial trade, you must have 2813 in initial cash.
>     After the trade is placed, 2250 is resevered to maintain the
>     position above the unrealized P/L. However, you can't do anything if
>     your account balance is below $3000 with IB, nor should you because
>     the risk of ruin is probably 100%.
>      >
>      >
>      >
>      >
>      > ________________________________
>      > From: Edward Pottasch <empottasch@xxx>
>      > To: amibroker@xxxxxxxxxxxxxxx <mailto:amibroker%40yahoogroups.com>
>      > Sent: Fri, January 29, 2010 3:42:51 AM
>      > Subject: [amibroker] OT: Initial Margin, Maintenance Margin
>      >
>      > Â
>      > hi,
>      > Â
>      > I was reading about how much cash you need on your account
>     before auto liquidation kicks in at Interactive Brokers when
>     daytrading futures
>      > Â
>      > For instance for ES the Initial Margin is 2813, the maintenance
>     Margin is 2250. From the example they give on their site (see below)
>     I understand that you need at least Initial Margin + Maintenance
>     margin. However, from wikipedia I understand that one only needs
>     the initial margin and if your account drops below the maintenance
>     margin it will liquidate the position. So does anybody know how it
>     works? I can open 1 position ES with 2813$ on my account and it will
>     close this position automatically if the price drops below 2250$?
>      > Â
>      > thanks, Ed
>      > Â
>      > Â
>      > Â
>      > http://www.interact ivebrokers. com/en/p. php?f=margin
>      > Â
>      > Example: Commodities Margin Example
>      > The following table shows an example of a typical sequence of
>     trading events involving commodities and how they affect a Reg T
>     Margin Account. Although our Universal Account automatically
>     transfers funds between the securities and commodities segments of
>     the account, to simplify the following example, we will assume that
>     the cash in the account remains in the Commodities segment of the
>     account.
>      > Action
>      > Change in Cash
>      > Resulting Net Liquidation Value
>      > 1. Deposit $10,000.00 + $10,000.00 $10,000.00
>      > 2 Buy 1 ES Futures Contract ($2,813.00) $7,187.00
>      > $850.00 * 50 (multiplier)
>      > ES Initial Margin Requirement = $2,813.00
>      > 3. End of Day: ESprice goes to $860.00 +$500.00 $7,687.00
>      > Gained $10.00 * 50 = $500.00
>      > ES Overnight Maintenance Requirement = $4,500.00
>      > Net Liquidation Value > $4,500.00 No Liquidation.
>      > 4. Next End of Day: ES price drops to $800.00 ($3,000.00) $4,687.00
>      > Lost $60.00 * 50 = $3,000.00
>      > Net Liquidation Value > $4,500.00 No Liquidation.
>      > 5. Next End of Day: ES price drops to $785.00 ($750.00) $3,387.00
>      > Lost $15.00 * 50 = $750.00
>      > Net Liquidation Value < $4,500.00 Liquidation occurs.
>      >
>
> 



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