On here the margin for soybean futures is $2700. If I have a subscriber that has less than that in his account that is set up for autotrading will it still execute the order? Assuming he has the brokers margin requirement satisfied of course, which in this case is around $1100.
thanks!
Hello Patrick,
You as a system developer enter your trade recommendations based on the current model account equity. However, when customers set up AutoTrading at C2, they will be able to set up personalized “scaling” for the signals that get put in their own trading account.
If a customer sets his scaling to 30% for example, that means he will trade 30% of the quantity that the system trades. We don’t actually know how much cash is in his brokerage account, so it is up to him to make sure that he chooses a trade scaling quantity that makes sense given (1) the amount of cash in his account, and (2) the size of the hypothetical model account on C2.
- Alen
help@collective2.com
And, to add a bit to Alen’s response:
If the AutoTrader’s broker allows the trade to go through (i.e. if the customer has enough margin available in his real brokerage account, according to the customer’s broker), then the trade will be placed.
C2’s “margin rates” for futures only determine whether you, as a system developer, are allowed to enter the trade into your C2 system’s Model Account in the first place. Once a trade is active in your Model Account, then it’s up to the customer’s individual scaling settings to determine the size of the trade that is placed in the customer’s real life account. Of course the customer’s broker has final say about whether a trade that is transmitted by C2 is actually accepted, or rejected, due to the broker’s margin requirements.
Thanks for your replies, I understand it now
