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Understanding Futures Trading Margin in Algorithmic Trading

Capstone Trading

Key Points in Understanding Futures Trading Margin for Algorithmic Trading

1.) You don't pay interest on margin trading in futures 2.) You can earn interest on T-Bills and use 90% of your T-Bills for futures margin 3.) Futures margins have dropped recently - back to 25% day trade margins on Stock Index Futures at Tradestation 4.) Margins could go back up if volatility increases so make sure you have enough capital to cover an increase in margins when trading a portfolio of trading systems 5.) We compare the latest margin rates and capital required when trading futures trading system portfolios at Tradestation and Interactive Brokers


Capstone Trading Systems Portfolios:

Tradestation Futures Margin Requirements

Interactive Brokers Futures Margin Requirements

 
 
 

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U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

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