{"id":21635,"date":"2025-05-20T13:31:04","date_gmt":"2025-05-20T20:31:04","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=21635"},"modified":"2025-05-20T13:31:04","modified_gmt":"2025-05-20T20:31:04","slug":"margins-4","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/margins-4\/","title":{"rendered":"Day Trading Margins, June Milk Class III, CME Trading Challenges; Your 3 Important Need-To-Knows for Trading Futures on May 21st, 2025"},"content":{"rendered":"

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Margins<\/h1>\n\n\n\n
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SPAN and Day Trade Margins<\/h1>\n

by John Thorpe, Senior Broker<\/em><\/h3>\n

\"margins\"<\/p>\n

Dive into Margin creation<\/h3>\n

Day trade margins are back to \u201cnormal\u201d day trade valuations.<\/p>\n

Remember Trump highlighted the need to pass and extend his 2017 tax cuts which are set to expire at years end if a new bill wasn\u2019t passed to extend those tax credits.<\/p>\n

Well, we are on the doorstep of that request.\u00a0 Watch for equity index strength if it passes in the house this week and weakness if it doesn\u2019t. Memorial Day weekend was his target to have the legislation passed.<\/p>\n

A quiet data day tomorrow.<\/p>\n

On a different note, I hear a lot about from my day traders want to understand more clearly how margin is set and when can we expect reduced day trade margins.<\/p>\n

Here\u2019s the short version: Margins are set by the exchange based on a number of factors then the clearing houses adjust day trading parameters based on the exchange Initial margin. Volatility is the biggest factor to affect exchange minimum initial margin.<\/p>\n

Here\u2019s the long story from the CME:<\/p>\n

https:\/\/www.cmegroup.com\/solutions\/risk-management\/performance-bonds-margins\/span-methodology-overview.html<\/a><\/p>\n

Market volatility is here to stay for the foreseeable future with it\u2019s ebbs and flows.<\/p>\n

Choose your opportunities wisely. Today\u2019s market swings were largely back to normal ( pre tariff talk normal)<\/p>\n

Tomorrow:<\/strong><\/span><\/em><\/p>\n

Econ Data<\/strong><\/span><\/em>:\u00a0\u00a0EIA Energy stocks.<\/p>\n

FED Speak:<\/strong><\/span><\/em> One speaker Barkin @ 11am CT<\/p>\n

Earnings:<\/strong><\/span><\/em> TJ Max, Lowe\u2019s, Medtronic, Target<\/p>\n

Tariff news:<\/strong><\/span><\/em>\u00a0 Anything goes!<\/p>\n

SPAN Methodology Overview<\/p>\n

CME SPAN\u00a0<\/a>is a market simulation-based Value at Risk system that allows you to assess risk on a portfolio basis. Explanations and examples of risk arrays and SPAN analysis are included.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n

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June Milk<\/h3>\n

June class III milk satisfied its second upside PriceCount objective and is correcting. At this point, IF the chart can resume its rally into new sustained highs the third count would project a potential run to the 20.55 area.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an \u2018exact\u2019 science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. <\/em><\/p>\n

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com<\/em><\/p>\n

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.<\/em><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Daily Levels for May 21st, 2025<\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Want to feature our updated trading levels on your website?\u00a0Simply paste a small code, and they’ll update automatically every day!\u00a0Click here for quick and easy instructions<\/a>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Economic Reports<\/h1>\n

provided by:\u00a0<\/a>ForexFactory.com<\/a><\/p>\n

All times are Eastern Time (New York)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Find us on Trustpilot<\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\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<\/em><\/p>\n

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. <\/em><\/p>\n

Opinions, market data, and recommendations are subject to change at any time.<\/em><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Cannon Trading Co., Inc.<\/span><\/em><\/p>\n

12100 Wilshire Blvd<\/span><\/em><\/p>\n

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Los Angeles, CA 90025 US<\/span><\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Margins SPAN and Day Trade Margins by John Thorpe, Senior Broker Dive into Margin creation Day trade margins are back to \u201cnormal\u201d day trade valuations. Remember Trump highlighted the need to pass and extend his 2017 tax cuts which are set to expire at years end if a new bill wasn\u2019t passed to extend those […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1434,231,76,230,239,67,70,30,3,61,358,233,234],"tags":[18,16,1669,1681],"class_list":["post-21635","post","type-post","status-publish","format-standard","hentry","category-charts-indicators","category-commodity-brokers-2","category-commodity-trading-2","category-day-trading-2","category-financial-futures","category-future-trading-news","category-future-trading-platform","category-futures-broker-2","category-futures-exchange","category-futures-trading-2","category-futures-trading-education","category-options-trading-2","category-trading-guide","tag-day-trading","tag-futures-trading","tag-margins","tag-milk"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/21635","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\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=21635"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/21635\/revisions"}],"predecessor-version":[{"id":21637,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/21635\/revisions\/21637"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=21635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=21635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=21635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}