Futures Explained Pt.4 www.goldenzonetrading.com Margins & Trading Times.

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Futures Explained Pt.4 Margins & Trading Times

Understanding Margins Margin is referred to as the cost of putting on a trade. It is the amount set aside in your account for each contract you trade. Your margin varies by the market and the session time (day/overnight). Margin for futures is different than with stocks because we aren’t paying interest and we are not borrowing money. We are setting money aside that is already in our account. Our margin acts as a security deposit for the trades we take because futures are highly leveraged assets.  Initial margin – the minimum capital amount needed to open a trade.  Maintenance margin – the minimum capital amount needed to keep the trade open. If your account falls below this amount your broker can liquidate your position without notice. Ex: Initial Margin = $5000 Maintenance Margin = $3000 If your account lost more than $2000 your broker will liquidate the position  Excess margin – money left over in your account in excess of the initial margin requirements to open positions.  Day Trading Margins – Is the amount set by your broker in order to enter into a trade in $ value per contract during market trading hours. the day trading margins return to the initial margin requirements once the market closes. Once the market re-opens your broker will switch back to day trading margin requirements.  Please visit AMP Global Clearing & NT Brokerage margin buttons below this video to identify their day/initial margin requirements.

Market Hours / Market Sessions  One benefit to trading futures is that it provides flexibility with trading times available to trade.  Unlike equities and options markets, global futures trading is open six days a week for 23 hours a day.  This provides multiple opportunities for traders to trade different market sessions. (US/Aussie/Asia/Euro)  A benefit to trading futures is that you can choose to trade faster market sessions like the (US/Euro) or you can trade the slower market sessions like the (Aussie/Asia).  Visit the button below this video to view a detailed list of all contracts and their available trading hours.

Globex vs Day Sessions

Market Trading Times (Suggestions) US Market Session: (9:30 am) – (4:00 pm) (FAST SESSION)  (ES/NQ/YM/TF)Monday – Friday: (8:00 am – 11:45 am)/(1:00 - 3:45 pm)  (GC)Monday – Friday: (7:00 am – 11:45 am)/(1:00 pm) – (2:00 pm)  (CL)Monday – Friday: (7:00 am – 11:45 am)/(1:00 pm) – (2:00 pm)  (6A)Monday – Friday: (8:00 am – 11:00 am)  (6B)Monday – Friday: (8:00 am – 11:00 am)  (6E)Monday – Friday: (8:00 am – 11:00 am) Aussie and Asian Session: (6:30 pm) – (3:00 am) (SLOW SESSION)  (GC)Sunday – Friday: (7:30 pm – 11:00 pm)/(2:00 am) – (5:00 am)  (CL)Sunday – Friday: (7:30 pm – 11:00 pm)/(2:00 am) – (5:00 am)  (6A)Sunday – Friday: (7:30 pm – 11:00 pm)/(2:00 am) – (5:00 am)  (6B)Sunday – Friday: (7:30 pm – 11:00 pm)/(2:00 am) – (5:00 am)  (6E)Sunday – Friday: (7:30 pm – 11:00 pm)/(2:00 am) – (5:00 am) European Session: (3:00 am) – (9:30 am) (FAST SESSION)  (GC)Sunday – Friday: (2:00 am – 5:00 am)/(7:00 am – 9:25 am)  (CL)Sunday – Friday: (7:00 am – 9:25 am)  (6A)Sunday – Friday: (2:00 am – 5:00 am)/(6:30 am – 9:25 am)  (6B)Sunday – Friday: (2:00 am – 5:00 am)/(6:30 am – 9:25 am)  (6E)Sunday – Friday: (3:00 am – 5:00 am)/(6:30 am – 9:25 am)  (ES/NQ/YM/TF)Monday – Friday: (8:00 am – 9:25 am) THE ABOVE TIMES ARE DESCRIBED IN (EST)