# Is there a problem with my stats?

I’ve been looking at the Model Account Status and I don’t understand a few of the numbers. It shows available cash as \$124,025, but I think it should be about \$107,200. Also, Buying Power should be a lot more than it shows. Can somebody look into this?

Thanks,

Cliff

The numbers look correct.

Since the numbers are calculated by computer software, the probability is that they are correct. So why don’t you tell me specifically what you think should be different and why you think it ought to be different. If you prefer to send a private email, reach me at matthew@collective2.com.

The positions have been closed and I didn’t take a screenshot, so I’ll have to get back to you with something more specific. However, what about buying power? If I have \$140k in cash, shouldn’t I have \$280k in buying power? I hate to expose my ignorance, but I don’t understand.

"If I have \$140k in cash, shouldn’t I have \$280k in buying power?"

I do commodities rather than stocks, but is 2X margin the C2 default?

You are not alone. The C2 equations for calculating margin don’t seem to match the real world, and I have yet to figure out exactly how some of the numbers are arrived at. One of my systems got bit by a margin call, due to my lack of understanding.

It’s best to not get too close to the 50% line when using margin on any of your systems (even when it allows you to).

i think the problem is fixed now!

In contrast to most brokers, where – generally speaking – you trade only one instrument class, or you have separate “pools” of buying power for each instrument class, C2 does it a bit differently: you have only one pool of buying power, and the amount by which that available buying power decreases depends on the type of instrument you trade.

So, let’s take the example you mention. You have \$140K of cash. Does that mean you can buy \$280K of stocks? Yes! It does.

But… we don’t show your Buy Power as \$280K. Rather, we show it as \$140K, and then – as you buy stock positions – your Buy Power decreases by 50% of the amount of the position that you open. In other words, you effectively can buy \$280K worth of stock with \$140K of cash.

The advantage of doing it like this is that we can have one pool of buying power, and can deduct from it at different rates, depending on the type of positions you hold open. Thus, futures positions are debited from that same pool of buying power, as are option positions and forex positions.

To see how margin is being used on a position-by-position basis, click the little “unfold” icon in the upper right corner of the “open positions” section of your system page.

"you trade only one instrument class, or you have separate “pools” of buying power for each instrument class"

As it seemed a stock question, I didn’t get what you meant at first, but I am guessing by instrument class you mean forex, futures, stocks, options…

I see. Thanks.