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"Margin Value" - Instrument manager

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    "Margin Value" - Instrument manager

    Apologies. I'm sure this will be a duplicate, but the search didn't show up an answer.

    In Instrument manager there is a "Margin Value" field.

    I am aware that this is used to specify the amount of currency the broker requires to for me to place a trade of the minimum contract or lot size, so for example, NAS100 minimum margin required is 2 in my case.

    The broker's documentation goes on to say:
    For example, the MMR is detailed as $9 for 1 US30. If a trade is placed for a larger amount, the total MMR will increase. Using the example for the US30, if a client placed a trade for 5 US30 the MMR would be 5 multiplied by the minimum MMR ($9) creating a MMR of $45 to open a trade for 5 US30.
    My queries are:
    • if I am to trade a different contract or lot size, do I have to amend the figure in the "Margin Value" field of the Instrument manager for each instrument?
    • does this ONLY apply to backtesting?

    #2
    Hi James Beale,

    Thank you for your post.

    This property is only used for backtesting. With live orders the margin will be managed by your broker.

    This is the margin per contract like the setting in Tools -> Options... -> Simulator, however rather than looking at cash value it looks at account size.
    if you account size is 5000 and you use script with quantity defined by Account Size you buy 5000 / 5 contracts on each signal.
    Chelsea B.NinjaTrader Customer Service

    Comment


      #3
      Thank you for clarifying that the "Margin Value" in the Instrument Manager is only relevant in a back test situation.

      My query was deliberately slanted away from using quantity defined by Account Size. I have established this won't work on FXCM's platform, for example.

      Instead, if I am to trade a different contract size, do I have to amend the figure in the "Margin Value" field of the Instrument manager for each instrument? As I say, my broker's documentation says:
      ...for the US30, if a client placed a trade for 5 US30 the MMR would be 5 multiplied by the minimum MMR ($9) creating a MMR of $45 to open a trade for 5 US30.
      Therefore in the case of back test, if I trade more than one contract, do I need to multiply the margin by the contract size, and place this result in the "Margin Value" field, or will the back tester do this for me automatically?

      Comment


        #4
        Hello James Beale,

        The Margin Value would not need to be adjusted. From the example you would put 9 in the value. Then when you trade 5 contracts it will multiply 9 X 5.
        Chelsea B.NinjaTrader Customer Service

        Comment


          #5
          Thank you for your help.

          Further considering back-testing in NinjaTrader.

          We've established the answer to my earlier query, and I'm clear that the "Margin value" field in the instrument manager does not need changed when trading multiple contracts.

          However, I have a further query relating to the "Margin value" field concerning back-testing.

          My broker, FXCM, states that:
          For currencies, it must be 1,000 on Ninja Trader and it will be 1 Lot in Trading Station.
          For CFDs you can do a minimum of one (some have 50 minimum)
          This means that for forex I must place a trade of 1000 to achieve 1 contract on their server, i.e., 1000:1. For CFDs it is 1:1.

          I am unclear how to back test forex under these conditions. Should I simply treat everything as 1:1? If not, how should I proceed?

          Comment


            #6
            Hi James Beale,

            NinjaTrader is not going to behave like your brokerage in backtest in this regard.

            One 1 contract is one contract. It will not group a lot as a single contract.
            Chelsea B.NinjaTrader Customer Service

            Comment

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