margins of mnq mgc during news how much increase? and timing , is it all day or few minutes after before . does it stop trading these futures at 5pm or 4.45pm ? if suddenly raise margin for some sudden events volatility , will you notice how long before , or can be without notice? how can i know margin back to normal , where do i check ?? u said in post before becareful of fcms margin ? what u mean they change margins alot??
@Joshbarr4, you are welcome to the Optimus Futures community.
It is critical to understand that margin increases are the rule, not the exception, during periods of high market impact.
1. Margin Increases: The Reality of Notifications
We do not** typically send out individual notifications for margin increases.
- Why? This is because the FCM (Futures Commission Merchant)—the clearing house that actually holds your funds—does not always notify us in advance.
During periods of high volatility, the FCM may raise margins immediately to mitigate institutional risk.
- Expectations: You should always assume intraday margins will be significantly higher (often 2x or reverting to full exchange levels) during major economic releases.
2. Which Economic Releases Trigger Increases?
While any sudden event can cause a shift, you should prepare for higher margins during the following “High Impact” releases:
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CPI / PPI (Inflation Data): These are currently the largest market movers.
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FOMC / Fed Announcements: Specifically, the interest rate decision and the following press conference.
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Non-Farm Payrolls (NFP): The monthly jobs report.
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Presidential Elections or Geopolitical Conflicts: Any event that creates a “gap” risk for the exchange.
3. The 4:45 PM vs. 5:00 PM Rule
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Session Close: Contracts like the MNQ (Micro Nasdaq) and MGC (Micro Gold) officially close at 5:00 PM ET.
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The Cutoff: Our intraday margins are for the day session only. To avoid being charged the much higher “Overnight” exchange margin, you must flatten your positions by 4:45 PM ET.
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Liquidation: If you hold past 4:45 PM ET without sufficient equity to cover the full exchange margin, the system may automatically liquidate your position (if you do not
4. Monitoring “Normal” Margins
Since we do not send alerts when margins revert, you must take the initiative to monitor your buying power in the software, if available, or simply call us to ask. As mentioned above, pay attention to the dates of CPI/PPI/FOMC, etc.
5. Understanding “FCM Margin” Risks
When we say “be careful of FCM margins,” we mean that while the Exchange (CME) sets the overnight rate, the FCM sets the day-trading rate. If the market becomes too volatile, the FCM will raise that rate to prevent traders from becoming over-leveraged. If you are trading with only the absolute minimum required (e.g., exactly $50 for MES, $100 for MNQ), a sudden margin hike by the FCM could prevent you from placing your typical number of contracts. Always maintain a substantial capital buffer beyond the minimum requirement.
It is important to keep in mind that margin increases are driven by volatility and are intended to protect your account against potential deficits. While many traders see this volatility as an opportunity, we believe the risk factor is significantly amplified during these periods. Often, the more prudent approach is to wait for the market to digest the news and make your trading decisions once the initial reaction has settled.
Thank you,
Matt Z
Optimus Futures
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.