Futures Day Trading FAQ

  1. Can I trade futures through myTrack?
  2. Can I day trade futures through myTrack?
  3. Do I need a myTrack trading account to day trade futures?
  4. Do I get better margin when I day trade futures?
  5. Where can I find the most up-to-date performance bond requirements?
  6. What is a Designated Futures Day Trading Account?
  7. So if I want a Designated Futures Day Trading Account, I'm going to have to be flat at the end of every trading day (4 PM Eastern Time)?
  8. What happens if I still hold some futures positions at
    4 PM Eastern time in a Designated Futures Day Trading Account?
  9. Can I use one account to both day trade futures and hold futures positions?
  10. What are the rules for a Designated Futures Day Trading Account?
  11. Does this futures day trading account require a minimum of $25,000 in cash and/or securities?
  12. How do I start day trading futures?
  13. Where can I find out more basic information about futures and about day trading through myTrack?

 

Can I trade futures through myTrack?
Yes.
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Can I day trade futures through myTrack?
Yes.
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Do I need a myTrack trading account to trade futures?
Yes. To trade futures, you must first open a myTrack trading account and it must be a Margin Account. Once you have a myTrack trading account, you can enable your account for futures trading in much the same way you can enable your account for options trading -- you simply need to fill out some additional paperwork and send it to us.

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Do I get lower margin when I day trade futures?

If you day trade futures in a Designated Futures Day Trading Account, then yes, the day trading performance bond requirements ("margin") are significantly less than those required for non-day trading futures accounts.
Presently (as of 2/04/02), the margin requirements are as follows, subject to change at any time:

Security Initial Requirement Maintenance Requirement
E-mini S&P 500 $2,000 $1,000
E-Mini Nasdaq 100 $2,000 $1,000
Fortune E-50   $600    $300
E-Mini Russell $2,000 $1,000
S&P Midcap 400 $2,000 $1,000
Dow Jones Ind. Avg. $2,000 $1,000

The DJIndAVG Mini is not yet available, but we plan to offer it soon.

You should note that we are careful about monitoring customer accounts day trading futures with increased leverage, for your protection and ours. Increased leverage means increased risk for you and for us. We reserve the right to withdraw the increased leverage at any time with or without notice, at our discretion.

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Where can I find the most up-to-date performance bond requirements?

You can find up-to-date initial performance bond requirements and maintenance requirements on myTrack, for both regular and day trading futures accounts, by:
  1. Clicking on Chat
  2. Clicking on View Topics
  3. Going down to Trade
  4. Clicking on fut_margin.

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What is a Designated Futures Day Trading Account?

It's a myTrack futures account that offers increased leverage based on the Intra-day margin requirements listed above. It's also an account that is subject to special restrictions, including the restriction not to maintain any futures positions overnight.

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So if I want a Designated Futures Day Trading Account, I'm going to have to be flat at the end of every trading day (4 PM Eastern Time)?

Yes, as far as futures are concerned, you must carry no positions at the end of the trading day. You can still maintain overnight positions in stocks, mutual funds, and options.

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What happens if I still hold some futures positions at
4 PM Eastern time in a Designated Futures Day Trading Account?

We reserve the right to close you out, regardless of the gains or losses you might incur as a result.

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Can I use one account to both day trade futures and hold futures positions?

You can, but only if you do NOT plan to take advantage of the increased leverage available to futures day traders.

If you plan to day trade futures using increased leverage, you'll need a Designated Futures Day Trading Account. That will give you the increased leverage. However, once your account is classified as a Designated Futures Day Trading Account, you will have to open another account if you want to do some longer term futures trading.

The reason we can't let you do longer term futures trading in a Designated Futures Day Trading Account is because day trading futures accounts will be required to have no positions as of 4 PM Eastern time.

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What are the rules for a Designated Futures Day Trading Account?

  1. That you read and understand the rules set forth below.
  2. That you will use the increased leverage for day trading, not for overnight position trading.
  3. That you choose to hold no futures positions overnight, and you understand and agree that IF, AT 4PM EASTERN TIME, YOU CARRY ANY FUTURES POSITIONS, WE INTEND TO (BUT ARE NOT OBLIGATED TO) CLOSE OUT THOSE POSITIONS, REGARDLESS OF WHETHER SUCH CLOSING TRANSACTIONS RESULT IN GAINS OR LOSSES TO YOU.
    In addition, if your account has a FUTURE POSITION THAT FALLS BELOW THE INTRA-DAY PERFORMANCE BOND REQUIREMENT, WE MAY CLOSE OUT THIS POSITION BEFORE 4PM EASTERN TIME.
    (The intra-day performance bond requirements, which are listed above, can change at any time at our discretion—you can find up-to-date requirements on myTrack by clicking on Chat, clicking on View Topics, going down to Trade, and clicking on fut_margin.)
    You hereby agree to accept full responsibility for any such losses incurred and indemnify and hold harmless Track Data Securities Corp. and Penson Financial Futures, Inc. from and against all claims, demands, proceedings, suits and actions and all liabilities, losses and expenses associated in any manner with such action on the part of Track Data Securities Corp. and/or Penson Financial Futures, Inc.
  4. That you understand the reduced performance bond requirements for your futures day trading account are only in effect from 9:30 AM to 4 PM Eastern Time on weekdays when the equity markets are open. At other times, your account will be subject to our normal margin requirements, not the day trading requirements. These normal margin requirements are available on myTrack by clicking on Chat, clicking on View Topics, going down to Trade, and clicking on fut_margin.
    Any positions added during this time period will be closed out at 4PM Eastern Time the next business day if not already liquidated by you.
    For example, if let's say you purchase Future A at
    10 PM Tuesday (all times in this example are Eastern), then purchase Future B at 2:30 AM Wednesday. Normal margin requirements would apply to Futures A and B because they weren't bought during market hours, but at 9:30 AM Wednesday, your Buying Power would be recalculated based upon day trading margin requirements. Both future A and B must be liquidated during the trading day Wednesday-any securities that remain in your account at 4PM are subject to being closed out by us.
  5. That IF YOU WANT TO TRADE AND HOLD POSITIONS IN FUTURES OVERNIGHT, YOU MUST OPEN ANOTHER EQUITY AND FUTURES ACCOUNT WITH ITS OWN SEPARATE FUNDING, and buy or sell with our normal, full margin requirements.
  6. That you understand that while day trading itself can be a risky endeavor, day trading futures using maximum leverage can be an extremely risky endeavor. You are prepared to lose all of the funds that you use for day trading and acknowledge that such trading could result in losses beyond your initial investment.
    Please refer to the Track Data Securities Corp. "Day Trading Risk Disclosure" for further explanation of the risks involved in day trading.
    Please refer to the Track Data Securities Corp. "Commodity Futures Risk Disclosure Statement" for further explanation of the risks involved in trading futures.

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Does this futures day trading account require a minimum of $25,000 in cash and/or securities?

No, that rule only applies to pattern day trading accounts for equities. The account minimum is $2,000.

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How do I start day trading futures?

Click on the statement that best reflects your situation:
 

I do NOT have a myTrack equities trading account.

I have a myTrack equities trading account, but it is NOT enabled for futures trading.

I have a myTrack equities trading account enabled for futures trading, and I would like to USE MY EXISITING ACCOUNT TO DAY TRADE FUTURES EXCLUSIVELY.

I have a myTrack equities trading account enabled for futures trading, and I would like to OPEN ANOTHER ACCOUNT exclusively to day trade futures.


STEPS:

I do NOT have a myTrack equities trading account.
  1. Read ALL THE STEPS before beginning.
      You may want to print this page for your reference.

  2. Make sure you have an up-to-date version of myTrack on your computer.
      If you do not already have myTrack on your computer, please click here to download myTrack.
     
    If you have myTrack, please check which version you have by clicking on Help at the top of the myTrack screen and then select About. YOU NEED MYTRACK VERSION 5.0.13 OR HIGHER. You can upgrade to the latest rev by clicking here.

  3. Open an equity trading account.
      Enabling yourself to trade futures is similar to enabling yourself to trade equity options-you need to have a regular trading account first and then apply to trade futures through your account.
      Open an equities trading account by clicking on the "Open an Account" button on the top left-hand side of the myTrack screen. Make sure you ask for a Margin Account, because you cannot link a futures account to a Cash Account.

  4. Fill out and return signed futures account form and agreements.
      After opening an equities trading account, download the Complete Futures Package (which includes an Instruction Sheet), complete the application, sign the forms as required, and mail it back to us. The Complete Futures Package is located here.
  5. (OPTIONAL STEP) Complete a Designated Futures Day Trading Account Form (for Designated Futures Day Trading Account ONLY)
      If you want your account to be a Designated Futures Day Trading Account, click here to download and print the Designated Futures Day Trading Account Form, fill out the information requested, and return it by fax to 718-923-3139 or by mail to Track Data Securities/New Accounts Dept., 691 Fulton Street, Brooklyn, NY 11217.

Following steps 1-4 above will result in a myTrack trading account enabled for futures trading. If you follow Step 5, your futures account will be for day trading only. If you would like to maintain some futures positions and would also like to day trade futures with increased leverage, please open another myTrack trading account and enable it for futures trading. (You can open another myTrack trading account by clicking on the myTrade button in the upper left-hand corner of the myTrack screen and selecting Open Account at the top center of the myTrade screen.)


I have a myTrack equities trading account, but it is NOT enabled for futures trading.
  1. Read ALL THE STEPS before beginning.
      You may want to print this page for your reference.

  2. Make sure you have an up-to-date version of myTrack on your computer.
      YOU NEED MYTRACK VERSION 5.0.13 OR HIGHER.
    If you have myTrack, please check which version you have by clicking on Help at the top of the myTrack screen and then select About. You can upgrade to the latest rev by clicking here.

  3. Make sure your equity trading account is a Margin Account.
      You can convert a Cash Account to Margin by clicking here to download the Acknowledgment Page, initialing and signing it, and mailing it back to us.

  4. Fill out and return signed futures account form and agreements.
      Download the Complete Futures Package (which includes an Instruction Sheet), complete the application, sign the forms as required, and mail it back to us. The Complete Futures Package is located here.

  5. (OPTIONAL STEP) Complete a Designated Futures Day Trading Account Form (for Designated Futures Day Trading Account ONLY)
      If you want your account to be a Designated Futures Day Trading Account, click here to download and print the Designated Futures Day Trading Account Form, fill out the information requested, and return it by fax to 718-923-3139 or by mail to Track Data Securities/New Accounts Dept., 691 Fulton Street, Brooklyn, NY 11217.

Following steps 1-4 above will result in your myTrack trading account being enabled for futures trading. If you follow Step 5, your futures account will be for day trading only. If you would like to maintain some futures positions and would also like to day trade futures with increased leverage, please open another myTrack trading account and enable it for futures trading. (You can open another myTrack trading account by clicking on the myTrade button in the upper left-hand corner of the myTrack screen and selecting Open Account at the top center of the myTrade screen.)


I have a myTrack equities trading account enabled for futures trading, and I would like to USE MY EXISITING ACCOUNT TO DAY TRADE FUTURES EXCLUSIVELY.
  1. Complete a Designated Futures Day Trading Account Form
      If you want your account to be a Designated Futures Day Trading Account, click here to download and print the Designated Futures Day Trading Account Form, fill out the information requested, and return it by fax to 718-923-3139 or by mail to Track Data Securities/New Accounts Dept., 691 Fulton Street, Brooklyn, NY 11217.

Following this one step will result in your myTrack trading account being enabled for futures day trading only. If you would like to maintain some futures positions and would also like to day trade futures with increased leverage, please open another myTrack trading account and enable it for futures trading.


I have a myTrack equities trading account enabled for futures trading, and I would like to OPEN ANOTHER ACCOUNT exclusively to day trade futures.
  1. Read ALL THE STEPS before beginning.
      You may want to print this page for your reference.

  2. Open another equity trading account.
      You can open another myTrack trading account by clicking on the myTrade button in the upper left-hand corner of the myTrack screen and selecting Open Account at the top center of the myTrade screen. Make sure you ask for a Margin Account, because you cannot link a futures account to a Cash Account.

  3. Fill out and return signed futures account form and agreements.
      After opening an equities trading account, Download the Complete Futures Package (which includes an Instruction Sheet), complete the application, sign the forms as required, and mail it back to us. The Complete Futures Package is located here

  4. Complete a Designated Futures Day Trading Account Form
      If you want your account to be a Designated Futures Day Trading Account, click here to download and print the Designated Futures Day Trading Account Form, fill out the information requested, and return it by fax to 718-923-3139 or by mail to Track Data Securities/New Accounts Dept., 691 Fulton Street, Brooklyn, NY 11217.

Following these steps will result in a second myTrack trading account, to be used for futures day trading only. You can use your current futures account for medium and long-term futures trading.

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Where can I find out more basic information about futures and about day trading through myTrack?

Click here to read about Futures Trading through myTrack.
Click here to read the FAQ about day trading in general.

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