The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.

Equity versus Buying Power

A question to the seasoned investors. I trade on Interactive Brokers. If my trading account has 50K Equity and 200K buying power. Should I limit the sum of my C2 Strategy investments to 50K or I can go up to 200K. What would be the guidelines for Futures strategies and Forex Strategies?
I would be putting strict stop loss settings of around 2K per position. Does that effect the calculations.

Strategy providers can use leverage in their stragies so you have to limit them according to your balance. However, some strategies will never use leverage in form of buying power. (You can still use leveraged ETFs and therefore have leverage but not use more than your balance)

Futures will just take up a certain amount of your buying power as margin. If you follow a futures strategy make sure you check how many futures it trades. The margin requirements at different brokers vary a lot. IB is usually on the more conservative side so be aware of the requirements. I´d say always have a brief chat with the strategy developer about the usage of buying power to be reassured.

1 Like
Back to C2 Platform