Hubert Senters here.
Got a question from Mike about the margin rates on bonds so let’s go grab his question. Mike says I have a question for you I’m trying to open up a Futures account, I’m currently with TOS and to trade the 30 year Bond you need $4400 in your margin account.
That’s probably to hold it overnight Mike, it’s usually how they do that for the most part asking what you want to know is you what to know what is their intraday margin and what is their overnight margin on the 30 year. That’s the overnight margin so if you want to sleep with it.
In other words if you want to take it home overnight you’ll need that but if you’re just day trading it will be less.
And then I check with Tradestation they want $2200 margin to trade the 30 year so yeah, once again you’ll need to make sure that you — there’s three different types of margin there. There’s intraday, there’s overnight and there’s enhanced intraday.
And you’re also asking me like I’ve said that you can get anywhere from $500-1k. It’s usually enhanced intraday margin. People like Infinity futures, Ninja trader, Interactive brokers folks like that will probably entertain that. There’s all kinds of different futures brokers out there you just pick one that you like.
But Tradestation is fine. You just got to know what the intraday margins are and what the overnight margins are. And all brokerage fees are negotiable all the way down to the minimums.
The exchange will set the minimum. Let’s say the overnight margin for a Bond is $4000 overnight. Well, they can’t charge under that but that would be the minimum and they could hold a margin for overnight.
Let’s say the minimum of intraday margin. I’m just throwing out numbers on the top of my head. Let’s say it was a $1000 from the exchange. They can charge over $1000 but they can’t go under a $1000.
But there’s a lot of wiggle room there because it’s competitive. The futures brokers used to make a lot of money on the commissions and now they’d be lucky if they make anywhere from a nickle to a quarter on you so everybody it’s kind of a brace to the bottom.
It’s a commodities business where it’s just an execution so a lot of people give it to you in some cases damn your free in some cases. But I hope that helps you out.
Now, what I would do instead of trading the 30 I will trade this creature first. The margin is going to be half on the 15 year note. as opposed to the 30 year bond.
And it’s still lose quite well as you can see. Up $1906. I was up a total of $1968 and that’s on a 10 year note trade and that’s on a one lot and so I took about $156 of risk.
And I’ll be doing a live webinar on how you can potentially make a $1000 or in this case more risking only $156.32. Let me go grab that registration page.
Like I said I’m going to be doing a special webinar on How to Make $1,000 or More Risking Only $156.25.
Heads up it’s always potential how to potentially make. I can’t guarantee you anything. You know this is the financial markets but you just saw letting me doing it.
So if you’re interested in learning this type of stuff Wednesday, March 31st at 8PM EST. I’m going to HYPERLINK you to the registration page if you sign up for this thing.
I highly recommend that you show up because GotoWebinar maxes out at a thousand people. I’ve already got close to 2000 people register for it.
By the time Wednesday maybe higher so you want to log in about 15 minutes early. And if you want I think somewhere on the page it will allow you to put in a text message and I’ll text you or usually a voice reminder and call you hey, this is Hubert remember you got a webinar tonight on date.
Good luck. Hope it helps. See you on the next video.
Hubert.
