# SPI noob stuff



## MS+Tradesim (13 January 2009)

1) What should the initial margin be? On the IB sim it is $13,750. How is this  calculated?

2) Is variation margin calculated and charged at 16:30 Sydney time? So theoretically, if you close out prior to 16:30 and open a new position after the SPI is open again (30mins or whatever it is later), you would not be subject to a variation margin? Just technically curious here as obviously any trade should work on its own merit...


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## Trembling Hand (14 January 2009)

IB have temporarily (months ago ) removed the day trading margins which had the SPI at $6500. So now you need the full margin. Margins are set by the exchange but some brokers accept less. 

With IB the day trading margins would normally be removed 15 min before close of the day session.

To hold positions overnight you will be charged the full margin at 4:15 with IB. Not enough margin and your position gets closed. Though that's not an issue at the moment because you have to have full margin to open a position anyway.


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## tech/a (14 January 2009)

*T/H*
So thats $13,500(ish)/ contract?
They have 4:1 margin through the day so is that effectively $3,375/contract if day trading?
So I could trade 20 lots on $70,000.


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## Trembling Hand (14 January 2009)

Nope. The 4:1 doesn't apply to futs. They have overnight margins and day margins which are set by each exchange.

To open a position,

Day = $6500 (Day margin gone for now)
Overnight = $13750

Though they do reduce it to $11,000 once the position is open, for some reason.


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## tech/a (14 January 2009)

Thanks


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## MS+Tradesim (14 January 2009)

Thanks TH.


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## MS+Tradesim (15 January 2009)

Initial margin back to 6875.


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