Any help will be appreciated.
The scenario is as below:
I use symbol mapping to watch Google stock and trade Google futures. That means I have Google stock on chart but actually my position in broker side is Google futures.
if I buy 100 shares@$500 of Google stock on chart.
Actually I got long 100 contracts@500 of Google future in broker.
Which one is the value of Portfolio_InvestedCapital?
1. 100x500 = 50,000 the stock market value.
or 2. 100x500x20% = 10,000 the futures margin.
What's the value of Portfolio_InvestedCapital? [SOLVED]
-
- Posts: 323
- Joined: 07 Jan 2007
- Location: Lahore, Pakistan
- Has thanked: 64 times
- Been thanked: 57 times
Re: What's the value of Portfolio_InvestedCapital?
Trading is essentially risk management; therefore, one's answer should be dependent on the what one wants to achieve. For instance, I would use the actual amount of margin money (in your account) for calculating the risk percent per trade. However, the P/L is based on the full value of the underlying instrument.Any help will be appreciated.
The scenario is as below:
I use symbol mapping to watch Google stock and trade Google futures. That means I have Google stock on chart but actually my position in broker side is Google futures.
if I buy 100 shares@$500 of Google stock on chart.
Actually I got long 100 contracts@500 of Google future in broker.
Which one is the value of Portfolio_InvestedCapital?
1. 100x500 = 50,000 the stock market value.
or 2. 100x500x20% = 10,000 the futures margin.
Khalid
Re: What's the value of Portfolio_InvestedCapital?
Khalid, thanks a lot. I think it's my bad that I get you wrong understanding with my question. "Portfolio_InvestedCapital" is a keyword which I use in my signal. I want to know how many I have invested at this moment and how many left can be invested. It's all about how many shares/contracts I can put into order.Trading is essentially risk management; therefore, one's answer should be dependent on the what one wants to achieve. For instance, I would use the actual amount of margin money (in your account) for calculating the risk percent per trade. However, the P/L is based on the full value of the underlying instrument.
Any idea will be highly appreciated!
-
- Posts: 323
- Joined: 07 Jan 2007
- Location: Lahore, Pakistan
- Has thanked: 64 times
- Been thanked: 57 times
Re: What's the value of Portfolio_InvestedCapital? [SOLVED]
The short answer to your query is that "2. 100x500x20% = 10,000 the futures margin" is the Portfolio_InvestedCapital for the trade. However, if there is another open trade with 15,000 margin, then to the best of my knowledge the Portfolio_InvestedCapital would be 25,000.Khalid, thanks a lot. I think it's my bad that I get you wrong understanding with my question. "Portfolio_InvestedCapital" is a keyword which I use in my signal. I want to know how many I have invested at this moment and how many left can be invested. It's all about how many shares/contracts I can put into order.Trading is essentially risk management; therefore, one's answer should be dependent on the what one wants to achieve. For instance, I would use the actual amount of margin money (in your account) for calculating the risk percent per trade. However, the P/L is based on the full value of the underlying instrument.
Any idea will be highly appreciated!
When I wrote my initial reply, I fully knew Portfolio_InvestedCapital is a PowerLanguage function. I was also cognisant how much capital a trader ties up in a trade is not the same as % risk per trade. For instance, if you put 20% of your account into a stock at $500 per share and risk $50 per share on the stock, then your risk is just 2% of your capital; not 20%. Even though my reply was appropriate in one sense, it was too indirect, nuanced, and very short! And I owe you an apology.
But because you " want to know how many I have invested at this moment and how many left can be invested" I am sure you understand you will have to factor in:
• the % risk per trade; and
• the portfolio heat;
into your calculations to stay out of trouble!!
Khalid
-
- Posts: 323
- Joined: 07 Jan 2007
- Location: Lahore, Pakistan
- Has thanked: 64 times
- Been thanked: 57 times
Re: What's the value of Portfolio_InvestedCapital?
Please find attached is what the Dictionary Keyword Reference says about Portfolio_InvestedCapital.
Khalid
Khalid
- Attachments
-
- Portfolio_InvestedCapital.png
- (61.14 KiB) Downloaded 760 times
Re: What's the value of Portfolio_InvestedCapital?
Thanks, Khalid. It's great helpful.The short answer to your query is that "2. 100x500x20% = 10,000 the futures margin" is the Portfolio_InvestedCapital for the trade. However, if there is another open trade with 15,000 margin, then to the best of my knowledge the Portfolio_InvestedCapital would be 25,000.
When I wrote my initial reply, I fully knew Portfolio_InvestedCapital is a PowerLanguage function. I was also cognisant how much capital a trader ties up in a trade is not the same as % risk per trade. For instance, if you put 20% of your account into a stock at $500 per share and risk $50 per share on the stock, then your risk is just 2% of your capital; not 20%. Even though my reply was appropriate in one sense, it was too indirect, nuanced, and very short! And I owe you an apology.
But because you " want to know how many I have invested at this moment and how many left can be invested" I am sure you understand you will have to factor in:
• the % risk per trade; and
• the portfolio heat;
into your calculations to stay out of trouble!!