6L Margin Requirements: Day vs. Overnight Explained
6L Brazilian Real futures have a unique margin profile because the contract is volatile, thinner than major FX futures, and strongly influenced by macro shocks. If you don’t understand margin requirements, you’re risking forced liquidation, excessive drawdowns, and unexpected margin calls. This guide breaks down exactly how day and overnight margin work for 6L — and how to manage your risk so you don’t get blindsided.
The Two Types of Margin You Must Understand
Every futures trader must deal with two separate margin categories:
- Day Trading Margin – Discounted margin offered by brokers
- Overnight Margin – The full CME exchange requirement
The mistake most beginners make is confusing these two — and failing to recognize that overnight margin is the only number the exchange enforces. Day margin is just a temporary privilege from your broker.
Day Trading Margin for 6L
Day trading margin is what your broker requires to open and hold a position during intraday hours only. It is usually a fraction of the CME-required margin. Different brokers offer different day margins, but typical numbers look like this:
| Broker | Typical Day Margin for 6L |
|---|---|
| NinjaTrader / Tradovate | $500 – $900 |
| AMP | $400 – $800 |
| EdgeClear | $500 – $1000 |
That means you can control a 100,000 BRL notional contract with as little as $400–$1000 in your account. But there’s a catch:
If you hold past the broker’s cutoff time, your margin requirement instantly jumps to the full CME level.
Overnight Margin for 6L
Overnight margin is the real requirement set by the CME. You must meet this margin to hold a contract past the broker’s liquidation time, usually 4:00–4:30 PM ET.
Typical CME Overnight Margin for 6L
| Requirement | Amount |
|---|---|
| Initial Margin | $2,200 – $3,000 |
| Maintenance Margin | $2,000 – $2,800 |
The exact numbers change with market volatility, but 6L historically has higher margin than majors because the currency is more volatile and moves harder.
Key point: If you’re in a trade near the close with only $500–$1000 in your account, your broker will liquidate your position automatically unless you meet the full requirement.
Why Day Margin Exists — and Why It’s Dangerous in 6L
Day margin is a privilege, not a right. It exists because brokers know that most volatility happens during the session close and after-hours. But for a contract like 6L, which reacts violently to macro news, political events, and commodities, day margin can give traders a false sense of security.
Risks of relying on day margin:
- Unexpected liquidation before the close
- Slippage during forced exit
- Not enough buying power to handle volatility spikes
- Unexpected margin increases when volatility rises
6L is especially vulnerable to margin increases because emerging market currencies can move 1–2% in a single session.
Broker Cutoff Times: When Your Margin Changes
Every broker has a point in the trading day where day margin ends. After that time, you must meet the full exchange margin. Typical cutoff times:
| Broker | Day Margin Ends |
|---|---|
| Tradovate | 4:00 PM ET |
| NinjaTrader | 4:45 PM ET |
| AMP | 15 minutes before close |
Fail to reduce your position by this time and the broker will close it for you — usually at terrible prices.
Why Overnight Margin Is So Much Higher
6L trades thinly after hours and reacts violently to:
- U.S. interest rate expectations
- Brazilian political news
- Commodity shock waves
- Global risk sentiment shifts
If something happens overnight, you won’t have the liquidity to escape. That’s why CME requires much higher margin — it’s to protect you and the clearinghouse from overnight risk.
Intraday Volatility and Real Dollar Risk
Because 6L has a $5 tick value, even a small intraday move can quickly eat into your day margin cushion.
| Move Size | Dollar Value |
|---|---|
| 20 ticks | $100 |
| 40 ticks | $200 |
| 80 ticks | $400 |
| 150 ticks | $750 |
| 250 ticks | $1,250 |
A normal morning move in 6L can be 100–150 ticks. That’s why you cannot size positions based solely on day margin — your actual risk is far larger than the minimum required capital.
Margin Calls in 6L: How They Actually Happen
You don’t get a phone call anymore. Your broker just liquidates your position. Forced liquidation is:
- instant
- slipped
- usually worse than stopping out yourself
- sometimes done at multiple partial fills
If you’re near the day margin threshold and 6L moves against you, your account can get blown out before you can react.
Smart Position Sizing for 6L
You should size 6L positions based on:
- expected volatility (ATR)
- your stop distance in ticks
- the dollar value per tick
- your account size
You should never size based on “how many contracts your day margin allows.” That’s how beginners blow up accounts.
How Professional Traders Manage 6L Margin
- Hold fewer contracts than max allowable
- Never hold through the close without intention
- Avoid holding positions during Brazilian political events
- Reduce size during FOMC weeks
- Keep 3–5× day margin in the account as cushion
Professionals assume markets can move 100–200 ticks unexpectedly — because 6L absolutely can.
Final Thoughts
6L margin requirements aren’t complicated, but they’re easy to underestimate. Day margin lets you trade with small capital, but overnight margin is the true requirement — and the contract’s movement can wipe out undercapitalized traders fast. Use margin as a guideline, not a greenlight to oversize. Understand volatility, respect CME requirements, and time your trades around your broker’s margin cutoff.