I hear different explanations of Initial Margin in NinjaTrader. Can anyone clarify which one is correct?

One person says Initial Margin is triggered at 4:45 PM on any trade open at that time. Entry in Globex does not trigger Initial Margin requirement.

The other says Initial Margin is triggered for any trade held through 4:45 PM (Eastern) and/or any trade entered in Globex

Please clarify.

What Do These Numbers Mean?

Excess Intraday Margin is the amount of money in an account above the intraday margin required to hold a position during trading hours. In the example above, excess initial margin is $950, meaning that there is $950 in the account above the minimum $50 intraday margin for MES futures.
Excess Initial Margin is this the amount in your account above the minimum margin required to hold a position overnight. In the example above, excess initial margin is ($320), meaning there is insufficient excess margin to hold this position beyond the close of today’s session.
Any number in parenthesis is a negative value and thus means you have insufficient excess margin.

For NinjaTrader Brokerage clients, intraday positions must be closed 15 minutes prior to session close. This is 3:45 pm CT for the majority of popular contracts which is 15 minutes before the official session close at 4:00 pm CT. At this time, traders should ensure they do not have a negative value in the Excess intraday margin column.

For swing or position traders, who plan on holding a position overnight or for multiple days, sufficient excess initial margin must also be maintained.

Why not get the information directly from NinjaTrader?

https://ninjatrader.com/futures/blogs/monitor-your-available-margin-with-excess-margin-columns/

From the link above:

Do you think that answers my question?

My question was based on that loose information. It does not clarify anything. Thanks

Yes, I think it does answer your question. But you have to do the effort of reading the article at the posted link. Or keep asking random people. Up to you.

I hear different explanations of Initial Margin in NinjaTrader. Can anyone clarify which one is correct?

One person says Initial Margin is triggered at 4:45 PM on any trade open at that time. Entry in Globex does not trigger Initial Margin requirement.

The other says Initial Margin is triggered for any trade held through 4:45 PM (Eastern) and/or any trade entered in Globex

Please clarify.

Sure. "Initial Margin" is a CME term with a definite meaning.

The question is bigger than NinjaTrader, so let's start with what the exchange rules are. Then Ninja will be more clear. This may get a little complicated, but it's actually simple enough. Some background first:

The CME "day" ends at the CME close at 4:00 PM US Central Time. (5:00 PM Eastern Time.) The last trade of an official trading day will have to happen before then. The exchange then is closed for an hour and re-opens for the next official "day" at 5:00 PM Central/6:00 PM Eastern (it's still the same calendar day, but it's the next CME day). So trades dated today, 4/12/23 will only happen up to 4:00 CT/5:00 Eastern, 4/12/23. Trades that happen an hour later, after the hour pause, are trade-dated 4/13/23 even though they happened on the 12th by the regular calendar. This is just how the CME counts days. Basically, it's got a 1-hour "night".

Now, margin requirements are not set by the CME for day trades, and if you open a trade and then close it during the CME "day," that is, open it on one day after the CME open at 5:00 PM Central/ 6:00 PM Eastern and close it by the next 5:00 CT/6:00 ET, that trade was opened and closed the same CME "day" and does not have any required CME margin requirement at all. (And no CME Initial Margin.) Brokers are free to set their margins for these trades to whatever they want. A broker's "Intraday" margin is generally lower than the CME margin, in order to attract traders, but not always.

But if you open the trade before the CME close at 5:00 CT/6:00 ET and hold it over the period of the CME break and still are in it anytime after the new start at 6:00 PM CT/7:00 PM ET, then that is not a "day" trade -- you held it "overnight" (yes, not real night, but into the next CME "day"), and now the CME rules for margin apply.

So that's the context for Initial Margin requirements as far as the CME is concerned. You are going to need to meet the CME Initial Margin if you hold a trade after the CME close at 4:00 PM CT/5:00 PM ET. That's it. That's the CME rule.

But brokers don't want to get caught with any trades going past the close that are under-margined according to the CME. So, just as they can set their day-trade margins wherever they like, they can, and will, require traders to either put up the full Initial Margin or close the trade a little before the 4:00 CT/5:00 ET cutoff. Hence, Ninja Trader is going to give their traders only until 4:45 PM ET, and then the trade has to have the additional margin or be closed. All brokers will have some rule that is similar to that, and it is intended to make sure no trade is held past the 4:00CT/5:00 ET CME close without having at least the CME-required Initial Margin.

If you wait an hour and don't open a trade until after the next CME open at 5:00 PM CT/6:00 PM ET, then it's a new "day" trade and is not subject to CME Initial Margin, so long as it's closed by the next CME close.

Sorry this had to go on so long, but now the question is easy to answer:

A broker won't let you open a trade in one trade day and hold it over the break period between 4:00 PM CT and 5:00 PM CT (5:00 PM ET and 6:00 PM ET) without putting up the full Initial Margin, because that would make your trade span into another trade day. They will have their own cutoff, but something like 3:45 PM CT/ 4:45 PM ET is common and reasonable. The absolute cutoff is a second before 4:00 PM CT/5:00 PM ET, and they aren't going to wait that late. As to opening a trade "in Globex," that is not an important consideration -- you open it when you open it, and if you close it the same trade "day" (before the CME close) then it's a day trade and doesn't need Initial Margin. It you hold it beyond the end of the same day's CME close, it spans multiple "days" and you have to go by the CME Intial Margin rules. The reason NT has the 3:45 CT/4:45 ET rule is just to give them some leeway so they know all the trades will be either closed or margined at the Initial Margin level by the CME close at 4:00 PM CT/5:00 PM ET.

I hope this is clear. Once you know that all that matters is whether you're holding or not over the CME closing time (4:00 PM CT), it all gets simpler. If you re-read the NinjaTrader rules quoted above, I think you will see that this is what it means, with a 15-minute allowance to make sure they make the cutoff.

Bob.