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Old 06-24-2011, 02:30 PM   #1

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Cost of One E-mini S&P 500 Contract?

Hi all

I am new here and new to trading (still reading , learning, and paper trading)

I am i right in thinking one contract costs $500?

If i open a small account (very small) with $10,000+Margin how many contracts would i be able to buy. I will only start out with one contract at a time untill i am sure i know what i am doing and am profitable.

Any help is appreciated
Thanks.

Last edited by wykcoff; 06-24-2011 at 02:54 PM.
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Old 06-24-2011, 09:22 PM   #2

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Re: Cost of One E-mini S&P 500 Contract?

That amount required to trade ES contracts will depend on your brokerage, but yes you should be able to trade at least 1 ES contract with an account containing $10,000 in cash.
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Old 06-24-2011, 10:13 PM   #3

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Re: Cost of One E-mini S&P 500 Contract?

Thanks for the reply mini500 its appreciated.

i plan to open an account with mb trading and need $2000 to open a margin account to trade stocks, options, and futures.

here is a table from there site :-

Product Name - E-Mini S&P 500

Type Exchange Fee - $1.16

Total Fee - $2.11

Initial Intraday - $1,250

Initial Maintenance - $1,000

Initial Overnight - $5,000
Maintenance

Overnight - $4,000
Maintenance


So i am not too sure what all that means, but as far as i can tell i need $1250 per contract, and maintain a balance of at least $1000, and if i want to hold the position overnight i would need to have $5000 in my account.
Does that sound right or am i totally of base?. i could really use some help in understanding this.

Again any help is appreciated
Thanks
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Old 06-25-2011, 09:40 AM   #4

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Re: Cost of One E-mini S&P 500 Contract?

Quote:
Originally Posted by wykcoff »
Thanks for the reply mini500 its appreciated.

i plan to open an account with mb trading and need $2000 to open a margin account to trade stocks, options, and futures.

here is a table from there site :-

Product Name - E-Mini S&P 500

Type Exchange Fee - $1.16

Total Fee - $2.11

Initial Intraday - $1,250

Initial Maintenance - $1,000

Initial Overnight - $5,000
Maintenance

Overnight - $4,000
Maintenance


So i am not too sure what all that means, but as far as i can tell i need $1250 per contract, and maintain a balance of at least $1000, and if i want to hold the position overnight i would need to have $5000 in my account.
Does that sound right or am i totally of base?. i could really use some help in understanding this.

Again any help is appreciated
Thanks
Seems like you understand it.

it sounds like they won't let you trade if your account gets lower than 1250.

If the 2000 is not part of a larger pool of money, I would wait before you make the donation. With 2k you won't be able to use futures market leverage to the fullest capacity. If you have, say 25k, you can start a trade with 2 contracts and lose with those 2 contracts, but if you get a winner you can end up with as many as 20 contracts with that broker if you do it right. if you make only 3 pts on 20 contracts, you made 60 pts and only ever had 4 points at risk.

You can't do that with a tiny account.

MM
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Old 06-25-2011, 10:09 AM   #5

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Re: Cost of One E-mini S&P 500 Contract?

Quote:
Originally Posted by wykcoff »
Hi all
...

If i open a small account (very small) with $10,000+Margin how many contracts would i be able to buy. ...

Any help is appreciated
Thanks.
with a $10k account,

theoretically you can daytrade a lot of contracts. Some brokers require only $500 initial margin.

practically speaking... experienced traders will tell you -- you should trade a max of ONE contract.
I would even tell you not to start with less than $20k,

It is not the amount of risk capital that matters,
it is not the size of your past profit that matters,
What matters is... YOUR ability to make consistent small profits, day in and day out, with minimal intraday draw down.
When you have achieved that, then you can think about larger profit targets, and multiple contracts.


my 2c only,
there are more than one way to skin a cat,
other method/criteria have proven to be profitable as well.
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Last edited by Tams; 06-25-2011 at 10:15 AM.
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Old 06-26-2011, 05:25 AM   #6

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Re: Cost of One E-mini S&P 500 Contract?

Dear USA traders
Are you saying it costs $500 to enter 1 contract?
Is this a 10 point spread @$50 a point or a one off charge ?
Here in sunny South Africa I trade the ALSI 40 which is similar to your DOW
I pay the spread which is 17 points (30 points after hours)
That means if the bid is 100 and the offer is 117 I pay 117 to buy 1 contract
At $10 a point ,it costs me $170 for 1 contract. The contract must move 17 points before I break even
The market usually moves 200 points a day, but very volitile
I thought SA was expensive but $500 is a lot more
Kind regards
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Old 06-26-2011, 08:26 AM   #7

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Re: Cost of One E-mini S&P 500 Contract?

Quote:
Originally Posted by bobcollett »
Dear USA traders
Are you saying it costs $500 to enter 1 contract?
Is this a 10 point spread @$50 a point or a one off charge ?
Here in sunny South Africa I trade the ALSI 40 which is similar to your DOW
I pay the spread which is 17 points (30 points after hours)
That means if the bid is 100 and the offer is 117 I pay 117 to buy 1 contract
At $10 a point ,it costs me $170 for 1 contract. The contract must move 17 points before I break even
The market usually moves 200 points a day, but very volitile
I thought SA was expensive but $500 is a lot more
Kind regards
bobcollett
No!

You need as little as $500 of margin to trade 1 contract. The spread that you have to pay is normally 1 tick. So, with a 10k USD account you can trade 20 contracts.
If the market is 1280 bid 1280.25 offer, then to get in right away you buy at 1280.25.

To get out right away you would get out at 1280 and lose .25 ( 1tick ) on 20 contracts. In ES it's 12.50 USD a tick.
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Old 06-26-2011, 02:06 PM   #8

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Re: Cost of One E-mini S&P 500 Contract?

Dear MightyMouse
Thankyou
I was quite shocked when I first read the commission story.
I have been waiting for my green card for 3 years
When I get to the USA, I AM GOING TO KILL YOU GUYS ,and George Sorres.
And I am looking for Steve46
Kind regards
bobcolett
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