Trading margins are a set dollar amount you must have in your trading account to establish a futures position. There are two margins we enforce here at AMP Futures. There is a day trading margin and maintenance margin.
Margins Explanation: (Maintenance vs. Day Trading)
The maintenance Margin is set by the exchange. This is the amount required to carry a contract past the daily close.
Day Trading Margin is set by AMP Global. Day Trade Margin is solely the amount required to enter into a position per contract on an intraday day basis. It is NOT the risk liquidation trigger nor the maximum amount your account can lose.
Day Trading Margins are in effect anytime the market is open(both Day and Overnight Trading Sessions), except for the last 5 minutes of each trading session. AMP Global requests that you either flatten open positions or meet the exchange required maintenance margin 5 minutes before the daily close.
The Maximum Position Limit for symbol M2K is 1,000 contracts and MES, MNQ, MYM are 500 contracts.
Margins are not cash transactions instead it is just temporary dollar value that is deducted from your purchasing power on your trading account whenever you establish an open position. Keep in mind margins are on a "Per contract" basis. So if you have multiple contracts open you multiply the margin value by how many contracts you have open to determine the overall margin requirement.
Once your positions are closed out and you are "Flat" whatever margin requirements that were used for those positions are available once again as purchasing power. Of course, the overall outstanding value of your trading account due to direct results of the trading P&L will ultimately reflect your purchasing power.
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