2. Holding positions during the close

Holding trades is permitted (see below for details) during the 1 hour close and weekends, however there is risk. If you operate an account with a rising trailing drawdown, be aware of the functionality of the 15 minute period prior to market open (18:00 EST). You are unable to manage your position until the market opens at 18:00 EST, however, pre market trading can alter your position value and account balance (price is moving even though you can NOT see it on your chart). Likewise your Auto Liquidate Threshold Value may rise as it follows the high point of your account balance. By the time the market opens at 18:00 EST, you may find that you have less drawdown cushion than you had entering the close. Price, on occasion, can move so erratically premarket that it’s possible to hit your drawdown and lose the account.    

 

Note- all accounts except for the Glide, employ a rising trailing drawdown. The Investor option of the Leeloo Performance Account™ employs a rising trailing drawdown initially until it stops at the Initial Balance +$100.

Holding positions through the close of market (17:00 EST - 18:00 EST) is permitted during the practice phase.

The default behavior of Rithmic is to carry forward open positions into the new day at the close trade price of the prior day. This allows the user to see Day P&L in the Open P&L column. The Average Open Fill Price reported by the user is in fact the Close Trade Price of the instrument.

Ideally Rithmic would use the Settlement Price. However, the Settlement Price is in many cases not published until after the new trading day has already begun. Given this fact, the Close Trade Price was the convention that the brokerage community asked Rithmic to adopt to show Day P&L (normally the Settlement Price is very close to the Close). The trader is credited with the profit or loss and the position is carried forward at the close price. It is not a new position, it is the same position carried forward at a different cost basis. The profit (or loss) is added to (or deducted from) the cash.

P&L resets at the beginning of the new trading day for the product (not at the end of the old). The new trading day for NQ and many other products begins at 17:45 EST, not 16:45 EST. Please note that other products may begin their new trading day at a different time and that this time may be subject to change.

Additionally Stated: P&L is moved into cash and zeroed out during pre-open for the new day (17:45 pm EST) and a new day is started. For instance, on a $10,000 account – if a trader has initiated a 1 contract trade and decides to hold the position for profit overnight and the trade is in profit $50 before the start of the new day, the account balance becomes $10,050 and the position and P&L of 1 contract is still open for the 1 position. For most products this will be moved into cash at 17:45 pm EST for the start of the new day, but traders should look at the contract specifications on the exchange website for operating hours which can and do change.

Example: On a 2500 daily loss limit account - if a trader has a trade that is $1000 positive unrealized profit and the market closes on the day and then reopens and drops $3000 dollars and the trader exits when the P&L is $2500 below the high account balance water mark then in this scenario a trader would be liquidated when the market dropped $2500 from the closing balance (which was the high account balance).

Traders may hold up to 3 micros through the close.  For standard lots and any amount of contracts more than 3 micros- traders must get permission from the Leeloo™ admin before holding trades through the close of market. You will need enough profit to cover the Maintenance Margin for each Instrument per contract you plan to hold. If your account does meet the margin requirement, the account will be subject to a margin call and any active positions can be liquidated. Reference this guide (https://ninjatrader.com/PDF/ninjatrader_futures_contract_details.pdf).

Example, you would need at least $16,000 profit to hold 1 NQ contract. Send a ticket with the exact number of contracts and which particular instrument you plan to hold to receive confirmation from Leeloo™.  

Unless permission is granted by admin, ALL trades MUST be flat 15 minutes before the market close (of that particular instrument).

Please reference the chart below for session close times per instrument. Example, ES must be flat by 16:45 EST and Corn (ZC) must be flat by 14:05 EST.  

The FCM does not match off trades – First in First out. The first day you carry a position they will carry the highest or lowest traded price and will continue to carry that trade until the position is flattened. This is simply an accounting method they use to give the account the highest possible value to be used for margin. It does not affect the balance of the account in any way. Once the overnight run is processed and trades are matched off and statements are generated, the platform will adjust to coincide with the statements.