Hubert Senters here.
Let’s go the next question margin for intraday and overnight. It’s a little bit different on each contract in the bond futures market and it’s also depending on your broker. The exchange sets minimums and no broker can go below those minimums but they can go above those minimums.
So first thing once again call your broker because every commission structure is a little bit different at every brokerage house so it’s really important that you call whoever you’re clearing through. If you don’t know who to clear through on the webinar you can ask and I’ll tell you good people that we like to clear through and we don’t have any kickbacks or anything like that.
We don’t have any relationships. I’ll just tell you where I clear a lot of my trades to. And you can pick. I really don’t care where you go. I’ll just tell you some people to avoid and some that are better than others. So for intraday margin it can be as low as $300 to $1,000 dollars per contract for a bond and on average you might be able to get $500 intraday margin.
If you’re going to hold it overnight for more than 24 hours. It’s going to cost around $3,000 to hold over not on the 30 year. On the 10 year, it’s going to cost you $1400 to hold overnight. On the 5 year it’s going to cost you $743 overnight. And on the 2 year it’s going to cost you $304 to hold that thing overnight.
And once again, all the brokerages have slightly different commission structures and margin structures but they can’t go below the minimums. But they can go above. So best thing to do is call your broker and they’ll tell you exactly what their commission and margin intraday and over not margins are.
Good luck. Hope it helps and I’ll see you on the webinar
Hubert.
