Do I Add the Day Trading Margin to the Maintenance Exchange Margins?

[Mod-MattZ]

We are often asked: “Do I Add the Day Trading Margin to the Maintenance Exchange Margins?” for the initial Futures position.

You do not add your broker’s day trading margin requirement to the exchange’s maintenance margin. They are separate calculations for separate scenarios. Day trading margin applies when positions open and close within the same session. The maintenance margin covers overnight holds. If you keep a contract overnight, you must meet exchange requirements even if you initially used a day trading margin. Brokers typically offer lower day trading margins to accommodate active day trading, but the exchange’s higher maintenance margin takes effect once positions remain open after the close. Thus, you use whichever margin applies for intraday or overnight trades, not combined.

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Matt Z
Optimus Futures
www.optimusfutures.com