Currently C2 allows Strategy Managers to manage their Model Accounts on C2 as if they have access to lower day-trading margin for certain futures contracts.
Our intention was good (let people manage Model Accounts the way they are accustomed to trading) but this has led to investor confusion. The presence of day-trading margin at some brokers but not others makes it harder for investors to control their AutoTrading and understand the leverage they are deploying.
Therefore, at the end of the day on Friday May 17, C2 will stop supporting futures day-trading margin.
Before you flip the bozo bit, keep in mind that this does not affect any subscriber / AutoTrader from using day-trading margin in his or her actual brokerage account. If a broker grants day-trading margin, then great – the investor can use it, and thus can jack up his returns through leverage (and also correspondingly jack up his risk).
What the change means is simply that C2 is not allowing Strategy Managers to lever up their Model Accounts using day-trading margin.
Here is a list of the contracts affected (i.e. contracts where we currently allow day-trading margin in C2 Model Accounts). If you trade these contracts, be aware that the day-trading margin will no longer be available to your Model Accounts after Friday, and regular initial margin (right-most number) will be required.
Symbol | Day-trading | Non-day-trading Initial XG | 12,262 EUR | 28,456 EUR QCL | $2000 | $3000 @ES | $1407 | 7722 @NQ | $1750 | 7406 @YM | $782 | 6743 @TFS | $660 | 4506 QMGC | $255 | 493 DXM | 2950 EUR | 5691 EUR