View Full Version : Meaning of Equal Dollar Unit Parameters/ Captial Per Trade
lukesal
23rd February 2006, 01:17 PM
Could someone tell me what the meaning of this function is?
If I was trading a margin traded product (say 10%), and had a total trading capital of $5k ($50k leveraged), what is the meaning of capital per trade?
David Samborsky
6th March 2006, 12:18 AM
It is the amount of cash money that you contribute to a trade before margin. On the next release you have an option of specifying that the capital per trade is the total amount of money used in a trade (including cash and margin) or as it is now it represents the cash applied to the trade and then the marging increases the position size of the trade. For example if capital per trade is $5000 and you are using 10% margin then the total amount of stock purchased in the trade is $50000.
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