Rank: Member
Groups: Registered, Registered Users, Subscribers Joined: 2/6/2006(UTC) Posts: 15
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Good time-of-a-day!
I don't understand the principle of defying leverage in MS (system tester)!
Why, by default, margin for long is 100/0, but for short - 125/125 (inicial/maintenance)? Does it mean, that I buy without leverage and sell using it?
Please, give me an example (what should I put in text fields Long inicial, Long maintenance, Short inicial and Short maintanence) for leverage 1:4.
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Rank: Member
Groups: Registered, Registered Users, Subscribers Joined: 2/6/2006(UTC) Posts: 15
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Anybody here!?? :(
Isn't my question correct?
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers Joined: 3/7/2005(UTC) Posts: 1,346
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hey adreal..... if your thinkin along the day trader rule here in the states, placing 25 in the 'long initial' will give you the 4 times initial limit.... the long maintenance is for your margin call setting.... and of course we can realisticaly only use that amount once a day......
the intial short maintenance is often set at 150.... that's more to protect the brokers interests, by not allowing us to use 100% of your available funds it gives them a space coushin in case the market turns against us......
so answering,
Why, by default, margin for long is 100/0, but for short - 125/125 (inicial/maintenance)? Does it mean, that I buy without leverage and sell using it? ,
those are just common defaults subject to our personal broker agreements..... as a rule we can use 100% when going long, but less than 100% when selling short..... h
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Rank: Member
Groups: Registered, Registered Users, Subscribers Joined: 2/6/2006(UTC) Posts: 15
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Thank you! Everything is clear.
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