{"id":17744,"date":"2022-05-18T12:07:55","date_gmt":"2022-05-18T20:07:55","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=17744"},"modified":"2022-05-18T12:07:55","modified_gmt":"2022-05-18T20:07:55","slug":"margin-requirements-are-your-ally-futures-support-and-resistance-levels-5-19-2022","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/margin-requirements-are-your-ally-futures-support-and-resistance-levels-5-19-2022\/","title":{"rendered":"Margin Requirements are your Ally + Futures Support and Resistance Levels 5.19.2022"},"content":{"rendered":"
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Margin Requirements are your Ally<\/h1>\n
By Mark O’Brien, Senior Broker<\/div>\n
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As a rule, all futures contracts come with financial requirements in order to trade them.\u00a0These requirements come in the form of margin.\u00a0For the vast majority of traders \u2013 speculators \u2013 there are three types: 1.) the initial margin requirement, 2.) the maintenance margin requirement and 3.) the day trading margin requirement.\u00a0The first two are established by the futures exchange on which a particular futures contract is traded.\u00a0The initial margin requirement is the amount of cash you must have to initiate a position in the market.\u00a0The maintenance margin requirement – typically 80-90% of the initial margin requirement – is the amount of money required to maintain the position your account.\u00a0Day trading margin requirements are set by individual clearing firms and\/or brokerage firms and are fractionally lower than a contract\u2019s initial margin requirement, sometimes \u00b180% below the initial margin requirement.<\/div>\n
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While all these are designated as requirements, traders should also look at them as guardrails or markers that serve not just to notify you of the potential risk in the market you\u2019re about to trade, but also to give you an idea of the risk to your account you should anticipate once you\u2019re in the trade.\u00a0Be prepared.\u00a0In the event the market(s) you\u2019re trading cause an adverse drop in your account\u2019s balance \u2013 below the maintenance margin requirement of your position \u2013 and a margin call occurs, yes it\u2019s an unfavorable outcome, but it\u2019s also a genuine alert that you need to take action.\u00a0It\u2019s time to either offset part or all of the position or deposit more money (enough to bring your account back above the initial margin requirement) to keep the position.\u00a0Treat margin requirements more as words to the wise rather than handcuffs.\u00a0Trade with the thought that margin requirements are your friend.<\/div>\n
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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.<\/p>\n

Futures Trading Levels<\/strong><\/h3>\n

05-19-2022<\/p>\n

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Improve Your Trading Skills<\/h2>\n
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\n<\/a>Economic Reports, Source:\u00a0<\/strong><\/h3>\n

Forexfactory.com<\/a><\/p>\n

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This is not a solicitation of any order to buy or sell, but a current market view provided by\u00a0Cannon Trading Inc<\/a>. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

Get Real Time updates and\u00a0more on our private FB group! https:\/\/business.facebook.com\/groups\/1105191589938254\/ Margin Requirements are your Ally By Mark O’Brien, Senior Broker As a rule, all futures contracts come with financial requirements in order to trade them.\u00a0These requirements come in the form of margin.\u00a0For the vast majority of traders \u2013 speculators \u2013 there are three types: […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,358],"tags":[],"class_list":["post-17744","post","type-post","status-publish","format-standard","hentry","category-future-trading-news","category-futures-trading-education"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17744","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=17744"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17744\/revisions"}],"predecessor-version":[{"id":17745,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/17744\/revisions\/17745"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=17744"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=17744"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=17744"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}