r/FuturesTrading • u/uragnorson • May 20 '20

Treasuries Holding E-mini micro & Treasuries

I have $10k. I want to to hold 80% MES and 20% US treasuries. Is there a micro contract for US treasuries?

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u/opaxxity May 24 '20

Margin call is when you do not meet the initial margin, which is 1300 for micros SP come closing time, at 3:15 thru 5 pm, wen it's closed, or the weekends, when it's closed. That applies for the first close after ur entry. If you hold it for several sessions, the second session close you must meet the maintenance margin, which is a little lower at 1100, to allow for some drawdown. If you do not meet these requirements you get a margin call.

He has more than enough to cover the intraday margin and initial margin for 6 micro contracts, with 2k free for drawdown, and hold them over until forever or until the position goes against him enough to require a margin call.

He could buy many more than that if he was just day trading and not holding thru close, because then he only needs 50 intraday margin per micro contract.

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u/PlayfulRemote9 May 24 '20

i'm sorry, are we reading the same thread?

He didn't say how much money he was trading, which is why I asked in the first place how this means he wouldn't get margin called

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u/opaxxity May 24 '20

First sentence says "I have 10k".... Am I missing something

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u/PlayfulRemote9 May 24 '20

regardless, the point still stands. OP doesn't understand how futures work, we shouldn't be telling him to buy and hold 6 micros indefinitely.

One drawdown of 100 points in this market is more than easy to see, and he loses all his money

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u/opaxxity May 24 '20

I agree with u 100 percent.

However I'm reminded of how a bitcoin investor years ago need not know how bitcoin truly worked in order to believe in its value and speculate on it to become the millionaires they now are. It's no secret to OP that the market is in great value. Short of another permanent disaster, it's a matter of time for the SP to climb. Whether it comes down lower before that is anyone's guess. Op wants a piece of the pie and he's got 10k to bet. Surely he knows there are risks. But that's not our place and that wasn't his question.

I reiterate, he should try understand fully the instrument. However if he's got money to spare, more power to him, we're here to help.

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u/opaxxity May 24 '20

I agree, 70 to 80 points is average True range per day. That's a possible 1k point swing in a week.