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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures
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To: SE who wrote (36556)10/13/1999 11:40:00 PM
From: Gersh Avery   of 44573
 
Hi Scott ..

Margin requirements there are different than anywhere else.

Each type product has differend requirements ..

For instance .. the S&P daily has a requirement that runs like this:

Ticks on this contract are measured in one tenth of a point. You choose how many dollars per tick you wnat to run with. With the runs that I did today the max that I was running was $4 per tick. At that level, each one point gain in the SPX paid me (or I lost) $40.

At the time that I bought into the short, I specified that I wanted a stop set 100 ticks away from my entry. On that factor alone I was risking $400. Each of the SPX daily contracts also require a buffer of $25 for each dollar of bet.

So then, the margin required of me for the $4 per tick short was 4*100+4*25 or $500.

The overnight contract for the SP9Z requires a much higher buffer .. I think that it's $350 for the buffer, and then whatever you want for the stop level.

The basic idea is that you determine the required margin by the stop that you choose. The wider the stop the more margin is required for the transaction.

Now then .. how they offset the play .. I can only guess. My guess is that they make a "same kind" of play automaticly when you place your order .. again just a guess. This seems to me what John told LG here a few days ago. v10.go2net.com

Accounts can be opened there with no money down and you can try out trades there as a "player" with virtual (play) money so that you can get used to the system. I would highly recommend that you use the play method to get used to the system before you jump in with real money.

Anyway .. John is the person to ask. That way you can get the information from "the horses mouth."

Gersh
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