Margin Calculation of Hedge Positions

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charvo
Posts: 52
Joined: Tue Dec 04, 2012 1:15 pm

Margin Calculation of Hedge Positions

#1 Postby charvo » Thu Oct 10, 2013 11:02 am

Hi, I'm using V2.9 now.

I am finding a mistake in the margin calculation.

an example:

first, I buy 1 lot eurusd, the margin shows used, say, 1350$, okay so far

then, with 1st position open, I sell 1 lot eurusd, the margin shows used, still 1350$, this seems wrong to me!

now I have 1 lot buy vs 1 lot sell, ==> net exposure: 0 lot sell; so I think the margin used should be still 0$.

Do I get it right?

charvo
Posts: 52
Joined: Tue Dec 04, 2012 1:15 pm

#2 Postby charvo » Mon Oct 14, 2013 10:41 am

please, anyone care to explain?

or FT2 is made to calculate margin this way on purpose?

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Terranin
Site Admin
Posts: 833
Joined: Sat Oct 21, 2006 4:39 pm

#3 Postby Terranin » Mon Oct 14, 2013 12:13 pm

This is "hedged margin", it is charged when you have 2 opposite lots opened. It looks like you should not be charged in this case, but forex brokers still charge you, because you have opened positions.

Hedged margin is usually 1/2 of normal margin, and can be edited in symbol properties. In your case you have 2 lots opened, and hedged margin is 1/2 * 2 = 1 lot margin. So everything is correct.
Hasta la vista
Mike


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