What Do I Do With My Uninvested Money?

Not sure what to do with your uninvested cash in a futures account? Here is a solution! Futures brokers aren't permitted to offer you a money market fund (because this is technically a security product), but buying a T-Bill is the next best thing.

XPRESSTRADE offers the ability to purchase Government Issued Treasury Bills in $10K increments with 90-day maturities. The current interest rate on T-Bills is 3.48%, and all purchase requests take place on the Monday auction and are reflected in your account on Thursday. There is a $15 fee to purchase T-Bills and they will automatically roll-over at maturity unless you give us timely notice. If you would like your T-Bill to mature, as opposed to rolling it over, please let us know before the Monday auction, the week of maturity.

95% of your T-Bill value may be used toward margin, but remember you must always maintain a positive cash balance. For example, if you had $50,000 in your account, it would not be advisable to use the entire amount for the purchase of T-Bills, due to the fact that any market move against you would cause you to be debit cash in the account, even though you would have $47,000 available to be used toward margin (95% of the $50,000). Instead, you may want to purchase 40K and have $10,000 in cash available, to allow for price movement against you. This way you avoid the $50 charge for an early sale and the loss of interest you would have earned on the T-Bill if held until maturity.

Due to the costs associated with selling T-Bills prior to maturity, we recommend that you monitor your equity closely and not allow it to fall below zero. If you find that your equity is close to falling below $0, we recommend depositing additional funds. For More Information, contact an XPRESSTRADE representative today!