It seems C2 liquidates all the position when there is a margin call. Is there a way C2 can only liquidate the necessary amount to satisfy the margin call?
In fact that is what we attempt to do. We close positions one at a time in order of ascending margin use (that is, we close smallest positions first) until your hypothetical model account is brought into positive balance.
Of course, our calculations may be too granular, or there may be better ways to close the positions, but truthfully you should never get yourself in a situation where you have a margin call. If you ever have a subscriber and autotrader it would be disastrous for him, and so it’s something you must do your utmost to avoid.
Thanks. I thought C2 would try to closely simulate a real broker. Then it only have to close the necessary part for the margin call purpose.
Kevin -
That is pretty much what we do. We start with the smallest positions, and then close only the portion of that needed to clear the margin-call condition.
But as I said in my last post, I suppose it is possible the calculations are not exactly correct, and we may close more than strictly necessary. However, closing as little as possible is the intent.
