What is the Standard Capital Requirement to Trade in the Emini S&P 500?

[emg 12]

I BELIEVE the requirements are:

 

 

1) Start with $500K account

2) $100K per contract based on substantial SUBSTANTIAL risk trading in the futures market.

 

 

Hope this thread will help newbies and amateurs if they want to pursue trading.

 

And, I am looking for the best answer. Bring it up!

[MightyMouse 12]

I BELIEVE the requirements are:

 

 

1) Start with $500K account

2) $100K per contract based on substantial SUBSTANTIAL risk trading in the futures market.

 

 

Hope this thread will help newbies and amateurs if they want to pursue trading.

 

And, I am looking for the best answer. Bring it up!

 

A contract like ES is worth +- $65,000. Why do you think you need 100,000 to trade each 65000 ES contract? I am all for being conservative, but I think that amount is a is a little too conservative. On the other hand, if you feel one for one is too risky, then do what makes you feel good.

[Cory2679 11]

A general rule of thumb I have is the tick value multiplied by 1,000 for the minimum acccount size...so if I'm trading a one-lot in the ES, which is $12.50 per tick I think, I'd want a $12,500 account.

 

Of course that's just a general rule of thumb and wouldn't apply to everyone's strategy or every instrument.

 

In fact, trading the ES, personally I'd rather have more like at least $125,000 in my account so that I'd have some flexibility in position sizing (trading ten-lots on average).

 

EDIT: Of course, if I was trading emg's strategy, I would probably indeed want $100,000 per contract (or more).

Edited March 11, 2011 by Cory2679