About Trading Off-Exchange Futures (OTC)
ICM Brokers provides electronic access to many derivative instruments that mirror the underlying futures markets and offers them at a fraction of the margin requirements. Additionally the ICM Brokers Trading Platform makes available a full back office function that makes it easy for traders to realize the value of open positions as well as the profit and loss calculation of closed trades. However, it is important that traders understand how a trade works and how to calculate profits and losses manually.
Off-Exchange Futures offered at ICM Brokers
ICM Brokers focuses on giving access only to those off-exchange futures instruments that are electronically traded, highly liquid, and most desired by online traders. By limiting our product offering, we are able to guarantee best market execution for our customers.
Particulars of the Offered Instruments
| Class | Description | Symbol | Contract Size | Tick value |
|---|---|---|---|---|
| Energy Derivatives | Light Sweet Crude Oil | CL | 1,000 Barrels | $10 |
| Index Derivatives | Dow Jones | DJ | $10 x Index Value | $10 |
| Mini Dow Jones | YM | $5 x Index Value | $5 | |
| Mini NASDAQ | NQ | $20 x Index Value | $5 | |
| Mini S&P | ES | $50 x Index Value | $12.50 | |
| Commodity Derivatives | Sugar | SB | 112,000 lbs. | $11.2 |
| Financial Derivatives | Euro | EC | EUR 125,000 | $12.50 |
| British Pound | BP | GBP 62,500 | $6.25 | |
| Swiss Franc | SF | CHF 125,000 | $12.50 | |
| Japanese Yen | JY | JPY 12,500,000 | $12.50 | |
| Australian Dollar | AD | AUD 100,000 | $10 | |
| Canadian Dollar | CD | CAD 100,000 | $10 |
Margin Requirements
In order to buy or sell 1 contract (lot) of a futures instrument with ICM Brokers, the investor must have a minimum of $1,000 in the account ($2,500 for off-exchange financial futures). Though an initial margin of $1,000 is required, ICM Brokers has no maintenance margin on standard accounts. In order to guarantee that clients’ accounts do not extend into negative equity, the trading platform automatically closes all positions at the 5% Equity/Margin ratio.
Profit and Loss Calculation Examples
• Sell 5 CL at 43.50 | Buy 5 CL at 42.60
43.50 (open price) x 5 (lots traded) x 1,000 barrels (contract size) = 217,500
42.60 (close price) x 5 (lots traded) x 1,000 barrels (contract size) = 213,000
$ 4,500 (Profit)
• Buy 3 DJ at 8340 | Sell 3 DJ at 8520
8340 (open price) x 3 (lots traded) x 10 (contract size) = 250,200
8520 (close price) x 3 (lots traded) x 10 (contract size) = 255,600
$ 5,400 (Profit)