Sharwan Patel

What is the margin assumption on ALGOGENE?

Economy & Market

Hi team, I encounter many auto-closed positions while backtesting. 
I believve it is related to margin call? May I know what is the margin assumption on ALGOGENE?
I want to implement my strategy to remove this kind of scenario.
0 0
Posted on : 2023-06-21 14:12:16.614338
 
Jonathan Tay
https://algogene.com/community/post/12
1 0
Posted on : 2023-06-22 00:58:01.458341
 
admin
Thanks Johnathan sharing the reference link. 

Hi Sharwan, the margin level actually depends on the leverage you choose.
Here an example for your better understanding. eg, 
  • account leverage = 5 
  • initial capital = HK$100,000
  • stock A's current price is HK$100 and lot size is 100. 
When you buy 1 lot, you will need to have HK$100*100/5 = HK$2,000 as margin. 
In other word, the maximum number of lot you can buy will be 100,000/2,000 = 50 lot. For such case, you account need to have HK$100,000 to maintain the margin. 
If stock price drops to HK$99, your balance will become 100,000 + ($99-$100)*100*50 = HK$95,000, which is less than the required maintainance margin (i.e. HK$100,000). Thus, the system will auto-close some orders until the latest balance is able to cover the margin requirement. 
Basically, margin = 1/leverage
For above example, your margin level will be 1/5 = 20%

1 0
Posted on : 2023-06-22 02:31:45.376416
 
Sharwan Patel
Original Posted by - b'admin':
Thanks Johnathan sharing the reference link. 

Hi Sharwan, the margin level actually depends on the leverage you choose.
Here an example for your better understanding. eg, 
  • account leverage = 5 
  • initial capital = HK$100,000
  • stock A's current price is HK$100 and lot size is 100. 
When you buy 1 lot, you will need to have HK$100*100/5 = HK$2,000 as margin. 
In other word, the maximum number of lot you can buy will be 100,000/2,000 = 50 lot. For such case, you account need to have HK$100,000 to maintain the margin. 
If stock price drops to HK$99, your balance will become 100,000 + ($99-$100)*100*50 = HK$95,000, which is less than the required maintainance margin (i.e. HK$100,000). Thus, the system will auto-close some orders until the latest balance is able to cover the margin requirement. 
Basically, margin = 1/leverage
For above example, your margin level will be 1/5 = 20%

Thank you for the explanation. 
0 0
Posted on : 2023-06-22 07:59:44.686964
 
Sharwan Patel
Original Posted by - b'Jonathan Tay': https://algogene.com/community/post/12
Thank you for the reference post. 
0 0
Posted on : 2023-06-22 08:00:36.099895



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