Question 1

What is futures margin?

Accepted Answer

Futures margin is the deposit required to open and maintain a futures position. Day trade margins are typically lower than overnight margins and vary by broker. For example, ES day trade margin is approximately $500 while MES is around $50.

Question 2

How many ES contracts can I trade with $10,000?

Accepted Answer

With a $10,000 account and $500 day trade margin per ES contract, you could theoretically trade up to 20 contracts. However, professional traders recommend using only 10-25% of your margin capacity to manage risk effectively.

Question 3

What is the difference between ES and MES margin?

Accepted Answer

ES (E-mini S&P 500) has a day trade margin of approximately $500 and a point value of $50. MES (Micro E-mini S&P 500) has 1/10th the size with approximately $50 margin and $5 point value, making it ideal for smaller accounts.

Question 4

How much margin should I use when trading futures?

Accepted Answer

Conservative traders should use under 25% of available margin. Using 25-50% is moderate risk, 50-75% is high risk, and over 75% puts you at critical risk of margin calls. Professional traders typically use 10-25% to leave room for adverse moves.

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