# What's the value of Portfolio_InvestedCapital?  [SOLVED]

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thomashck
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### What's the value of Portfolio_InvestedCapital?

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.

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.

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### Re: What's the value of Portfolio_InvestedCapital?

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.

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.
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.

Khalid

thomashck
Posts: 19
Joined: 06 Oct 2013
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### 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.
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.

Any idea will be highly appreciated!

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### Re: What's the value of Portfolio_InvestedCapital?  [SOLVED]

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.
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.
Any idea will be highly appreciated!
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!!

Khalid

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### Re: What's the value of Portfolio_InvestedCapital?

Please find attached is what the Dictionary Keyword Reference says about Portfolio_InvestedCapital.

Khalid
Attachments
Portfolio_InvestedCapital.png

thomashck
Posts: 19
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### Re: What's the value of Portfolio_InvestedCapital?

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!!