Margin Trading – FTX.US

Confused on Margin Trading Calculation....

So I have a margin position open:
- 200 EOS - Base $5.24
200 EOS x $5.24 = $1048 x 15% min equity = $157
My margin USD balance shows the total and then available. Say I have $1000 balance. Does it mean it will "hold" onto $157 as my equity requirement and then have $843 available? The numbers are throwing me off as I'm not sure how to calculate it. So what is my liquidation amount that I lose my $157 or is it my entire $1000? I'm confused.
submitted by patoshii to bitfinex [link] [comments]

Margin Trading Calculations

Hey guys can someone please help me figure out how exchanges calculate P/L percentage wise. I have open leveraged positions at 2:1 and 3:1. Let's suppose I bought 100 ETH at 10.25 using 2:1 leverage, how do I calculate if the profit is correct percentage wise? I believe they're a little low. Please explain if it was with 3:1 leverage as well if you can. Appreciate all the help. 😉
submitted by ASG3 to ethtrader [link] [comments]

Margin trading, calculating and maintaining adequate margin

Hello all, I recently switched my account over to a margin account and I am a little confused on how to calculate the amount required to maintain margin. Margin requirement is 30%.
In a scenario where say I have 10k cash in my account, which would mean my total buying power is 20k. Would I multiply .7 against the 10k being loaned to me and then add to my cash balance to determine the amount I could use for trading or would .7 be multiplied against total buying power?
submitted by allTestsPassed to investing [link] [comments]

@cz_binance: No margin interests where charged during the trading pause, and the interest calculations will only be turned after everything is back to normal.

@cz_binance: No margin interests where charged during the trading pause, and the interest calculations will only be turned after everything is back to normal. submitted by rulesforrebels to BinanceTrading [link] [comments]

Question about calculating margin trading interest.

Just wondering the way to figure out how much interest you pay on a borrow? Is it the amount of coins x the percentage rate and then divided by the number of days? So if you borrow 1000usdt at 0.192 % for 28 days would that mean you would pay $6.85 for the total amount of days or is that each day?
submitted by jleist007 to kucoin [link] [comments]

What are some good trade/portfolio tracker options (that can also calculate for margin wallet)?

submitted by viccity1 to binance [link] [comments]

Margin trading P/L calculation

Can somente explain step by step how the profit of a margin trade is calculated? It seems to be less than i expected. For example, shorting 1 btc from 10.000 to 9900 with 1:3 leverage.
submitted by justanotherlogin to cexio [link] [comments]

Trading 100s of transactions per day - how is the margin calculated?

Let's say I have 10k USD in my margin account. I place 100 round trip orders in a single day, each worth 2000 USD (999 USD buy order and 1001 USD sell order).
How much margin did I use at the end of the day? Can I do as many 2000 USD round-trips a day as I like?
I am trying to understand how I can do frequent day trading without running into an issue with unsettled funds. I am interested in an answer both relating to stock and forex trading, and any other instrument that settles instantly or otherwise allows me to trade 100s of round-trips each day.
submitted by Viennaguy to Forex [link] [comments]

How to is the "Tradable Balance" calculated when Margin Trading ?

Does someone has the exact formula that allow you to calculate your "Tradable balance" on BitFinex based on your collateral in Margin Wallet, open positions and open orders ?

Initial equity is 30%. This means the USD value of the funds you hold in your Margin wallets need to be at least 30% of the USD value of the position you wish to open.
So if you have 1000 USD in your margin wallet. Those 1000 USD will serve as collateral for opening margin positions up to 3.33:1. IE a margin position with a USD value up to 3333.33 USD.
If you wish to use 2x leverage only, the size of your position should only be worth 2000 USD.
When holding 1000 USD your tradable balance will be 1000 * (1 / 0.3) = 3333.33 USD

This is the only info I found in the documentation. But this doesn't take into account open Margin positions and open Margin Orders.
submitted by Mishichi to bitfinex [link] [comments]

How to calculate cost basis on margin trading?

I'm writing a program to figure out my taxes owed for 2017 and also to understand when my crypto purchases are eligible for long-term capital gains. I did some heavy margin trading and I'm not sure how these trades should be calculated.
Let's say I bought 100 ETH in March 2017. Using FIFO, these would become long-term capital gains in March 2018. Easy peasy.
Let's now say that I margin traded on borrowed USD (went long, closed position, rinse repeat) for more than 100 ETH later in that year.
If I'm using FIFO, when I close my position (sell ETH) does this change the long-term capitals gains date of my initial pool of 100 ETH? Or is margin trading treated completely different in it's own separate pool?
Any advice in general in calculating margin trading taxes is much appreciated. Thank you!
submitted by _otpyrc to CryptoTax [link] [comments]

E-Trade Question - How is margin calculated with respect to maximum loss?

Sorry in advance for asking what might be a trivial question and one that is only applicable to a small group, but I've never used my margin power and I'm curious if I can get an answer before the weekend is over.
Question: How does E-Trade calculate margin if I run a spread / strategy where my maximum risk is greater than my cash on hand, but less than my margin power?
For example: I have $5,000 worth of stock in my account and $0 cash, but also $10,000 of margin buying power. If I open a bear call spread with an immediate credit of, say, $4000, but carry a maximum risk of, say, $6,000, does E-Trade reserve $6,000 of margin for my maximum loss? If so, does that cost me anything?
Just thinking logically I'd assume they flat out don't let you take risk greater than your cash+margin balance, but when do they charge interest on use of margin? Is it when you put the money at risk, or when you actually spend it?
submitted by Drunken_Dino to options [link] [comments]

Idea for another trading tool

Will be really helpfull to have an access to margin trading calculator. For example you will put lavarage, base price etc and how many you will earn if price will go up or dow for 100satoshi
or something like this exists?
submitted by lukaut to BitcoinMarkets [link] [comments]

After calculating margin trade profit, how should it be recorded for taxes?

I've manually calculated my BTC profits from margin long positions for the year. How would I show this on taxes?
Lets say you have 1 BTC profit from margin longing ETH/BTC. What is the correct way to identify this trade on bitcoin.tax?
Also, is it true you can declare margin trades as a CFD and count the profit as income rather than capital gains?
submitted by BattleChimp to bitcointaxes [link] [comments]

[Noob Question] Can someone explain how to calculate margin trading profit in a simple terms please

Sorry for the Noob question ahead of time. I understand it is risky and all. I am just curious, how do you calculate the profit from margin trading for an example like this one.
I have 1000 ether (at 50 USD each, which is a total of 50,000 USD) and I borrow 1000 ether more. Now I am at 2000 Ether in total. Can someone explain the rest. In a profit/loss calculation?
Please and thank you.
submitted by golden-china to ethtrader [link] [comments]

Trading tool: handy margin calculator

submitted by flexd to Eve [link] [comments]

Does anyone has a very helpful guide on how Kraken calculates all of the numbers related to margin trading. I know I sound foolish but I studied Business and economics but I need some explanation

submitted by VLADIMIROVIC_L to Bitcoin [link] [comments]

Does anyone has a very helpful guide on how Kraken calculates all of the numbers related to margin trading. I know I sound foolish but I studied Business and economics but I need some explanation /r/Bitcoin

Does anyone has a very helpful guide on how Kraken calculates all of the numbers related to margin trading. I know I sound foolish but I studied Business and economics but I need some explanation /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

How to calculate the amount of margin for a trade?

submitted by KiaraFinnan to Forex [link] [comments]

PRPL Nurples- Why purple valuation just might make your NIPS hard - DD inside

PRPL Nurples- Why purple valuation just might make your NIPS hard - DD inside
All- I have received hundreds of DM asking where the stock is going. I have received questions such as: where do you think it stops, is it over valued, undervalued, should my mom invest, should i Yolo, should i sell and take profits? blah, blah blah. Here is some DD- stop asking me about where this ends up because I don't know for sure but I have some Feely Good estimates. I hope this post makes your nipples hard and if it doesn't you're probably a gay bear.
I am going to give you a quick run down of what my expectations are for Q2 earnings and it will include the good, the bad and the ugly. The ugly being the warrant accrual that will hurt GAAP.
First of all, There is little that needs to be determined for Q2 top-line as they have already released April and May Sales. April Sales Came in around ~62M based on my math and May Sales came in at 88M and some change. Based on these numbers, we can safely assume that we will at a minimum have somewhere around 225M in revenue for the quarter by using the average of April and May to determine June. I believe 225M to be on the low side and I have continued to up my estimates as I believe E-commerce is still thriving, especially purple. Purple continues to climb the web traffic ladder and has moved up another ~500 spots to be the 13,000 most popular site in the world.

For simplicity sake, I am going to use some historical numbers to estimate profits. If you'll look at previous posts that I've made then you'll see how I arrived at these numbers. There are some quick napkin calculations below. We can safely assume that the average wholesale selling price of a mattress is ~1350 dollars and we can assume that GM for wholesale is around 30%. This means the average cost of a mattress to manufacture is ~945 on average. From my previous posts, we knew that pre Covid the business was split by units, not by gross sales. On average, wholesale consumed 50% of capacity and DTC consumed 50% of capacity. In order to determine average DTC selling price then we can equation .5*1350 + .5*(DTC Price) = 1900. PRPL indicated their average selling price per mattress was ~1900.00, I found this in their s-3.
-----------------------------------
.5*1350 + .5*(DTC Price) = 1900=========== DTC average price is 2450.00, 1350 is average Wholesale price.
DTC Margin is ~62% Estimated
Wholesale Margin ~30% Estimated
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Historically, advertising costs have been about 30% of revenue. I have been tracking advertisement for purple and from a TV cost standpoint, they have not increased their commercial count at all in the last three months. See link, PRPL is still only performing 125 commercials per day. This commercial rate has held steady for 6 months.
https://www.ispot.tv/brands/tqU/purple-mattress

I believe purple has increased their ad spend online but I believe it will be proportional to their new capacity on a unit basis.
Previously purple had 6 Machines of capacity and spent 38M in advertising, I believe they will spend (7/6)*38M which is 44M or roughly 15M per month. Just because revenue is up, doesn't mean they will spend more per unit- they are capacity constrained and that is terribly inefficient.
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The following table shows my best guesses on their major category costs. This includes the gross Margin and the other costs subtracted from the Gross Margin.
April May June (Est) Total Revenue net revenue effect
Gross Margin from Wholesale 6M*30% 17.3*30% 20M*30% $13M
Gross Margin from DTC 56M*62% 71M*62% 55M*62% $112M
SG&A Costs (3.5)M (3.5)M (3.5)M ($10.5)M
Research and Development (1)M (1)M (1)M ($3)M
Advertising (15)M (15)M (15)M ($45)M
Profit Non GAAP ----------- ----------- --------- 66.5M or 1.23 EPS
Warrant Accrual ($35M)
Profit GAAP Estimated $31.5M or .59 EPS
---------------------------------------------------------------------------------------------------------------------------------------------------
If we used 66.5M, PRPL would report 1.23 EPS on an adjusted Basis.
The warrant Accrual will unfavorably push the EPS down on a GAAP basis and we will likely see something around .59 EPS. If they can achieve this for the next 4 quarters then in a years time there is a huge potential for stock increases based on the following P/E's.

GAAP est. Non GAAP Est.
EPS Annualized $2.36 $4.92
Stock price assuming 8x P/E $18.88 $39.36
Stock Price assuming 12x P/E $28.32 $59.04
Stock Price assuming 15x P/E $35.4 $73.8
Stock Price assuming 20x P/E $47.2 $98.4

People may say that this is super inaccurate..... but if you look at the following cash statement then you will realize that PRPL has been generating more than 1M per day in cash for the last two months - that is absolutely insane.

purple has generated 70M in cash in 60 days.
Mark my words, PRPL is going to be more profitable than TPX this quarter. TPX reported earnings of .68 EPS today on revenue of 665M. TPX is trading at 80+ per share. if purple reports a similar .68 EPS then it would be valued about 60% lower than TPX on an EPS basis. if purple posts EPS of ~1 dollar then it would be undervalued as compared to TPX by about 80%.

I hope your NIPS are tender now. Hope this helps you understand why I believe PRPL to be so undervalued.
submitted by dhsmatt2 to wallstreetbets [link] [comments]

I paid $1000 for an Adam Khoo investing course so you don't have to! (Summarized in post)

Lesson one is "stock basics" summarized: (2 videos) for every buyer there's a seller, for every seller there's a buyer, fear and greed drives prices, what fundamental analysis means, what technical analysis means.
lesson 2 is ETFs summarized: (video 1) Bull markets are opportunities, bear markets are bigger opportunity's, Bear markets never last, always followed by bull market. (video 2) The market is volatile in the short term in the long term it always goes up, what an ETF is, different types of ETF indexes. (video 3) Expands on the different types of ETFs (bonds, commodities etc). (video 3) A 35min video on dollar cost averaging lol. (Video 5) summarizing the last 4 videos.
Lesson 3 is Steps to investing summarized: (video 1) A good business increases value over time, a valuable business has higher sales, earnings and cashflow. (video 2) invest in businesses that are undervalued or fairly valued, stocks trade below its value because investors have negative perception of the company
lesson 4 Financials summarized (all 4 videos) where to find financials, how to use a website (Morning Star) to screen stocks, how good is the company at making money, Look for companies that have growing revenue, check growth profit margin and net profit margin of company compared to industry.
Lesson 5 Stock Valuation summarized (2 videos) go here: https://tradebrains.in/dcf-calculato and look at what the calculator is asking for, go to Morning Star find the needed numbers that are required, bam you got the intrinsic vale.
Lesson 6 Technical Analysis summarized: (all 4 videos) What are candles sticks, what do they mean, support and ceilings, consolidation levels.
Lesson 7 The 7 step formula summarized: (3 videos) See what I wrote in lesson 3 and lesson 5.
lesson 8 Winning portfolio summarized summarized: (video 1) Diversify, keep portfolio balanced, different sectors (video 2) More sectors, Dividends (video 3) More on sectors, more on dividends, what are different stock caps (large cap, small cap etc)
Lesson 9 finding opportunities summarized: (video 1) see lesson 3, (video 2) creating a watch list,monitor news, company announcements, stock price, financials
Lesson 10 psychology of success summarized: (2 videos) basically: common sense.
Lesson 11 Finding a broker summarized: (1 video) look at fees and commissions, see minimum deposit, check margin rates, make sure it has a good trading platform.
I just saved you 18 hours and $1000.
submitted by swagbasket34 to investing [link] [comments]

Conservative Margin Lending - A tool to use, and a reason to invest outside of Super

Conservative Margin Lending - A tool to use, and a reason to invest outside of Super
Hi AusFinance, i thought i would write on a topic i'm rather passionate about, and hopefully offer some 'food for thought' and an alternative to the standard answers of 'Super is the best environment for your money'.
Disclaimers:
  1. this is not financial advice, i am merely trying to offer some food for thought
  2. these examples are greatly simplified, they do not take into account interest rate risk, legislation risk (both on super, on changes to tax, etc..).
  3. The case study below does not take into account the ability to margin lend inside super. the ability is there, such as Bell Potter's Equity Lever platform, but this is not available to your average retail/industry super, hence it is excluded.
Margin lending for the uninitiated:
For those of you unaware, margin loans are borrowing to invest. Your shares/fund units act as security that let you borrow money to buy more shares/fund units. These are given different levels of "Loan to Value Ratio" aka LVR.
a 75% LVR means you can make up a total investment with a minimum of 25% your money, and a maximum of 75% borrowed money. So with $2,500 you'd be able to borrow up to $7,500 (Making up a total portfolio of $10,000).

Why borrow to invest?
Simply put, Margin lending amplifies your gains and your losses. I have included a table below to demonstrate what a margin loan will do to a $25,000 investment at an 8% p.a. return at different LVRs. I am using Leveraged Equities variable 4.24% interest rate on their direct investment loan as the interest cost - the product offers access to the vast majority of funds and shares that an investor needs, it's just lacking advanced features like options trading (who cares!)

https://preview.redd.it/42p6co191lb51.png?width=786&format=png&auto=webp&s=764b15d0695792766367cc05b5adae78f3af840a
Here we can see the return improve from the standard 8% all the way to 11.8% if using 50% LVR. But in my opinion, 50% LVR is too risky for many investors appetite here, even if it is my ideal point. Instead, i would direct your attention to 35% LVR.
Why 35% LVR?
a 35% LVR comes with a number of benefits to an investor doing standard VAS/VGS/VDHG style etf investing.
  1. Increased returns - as we can see it takes an 8% return and increases it to a 10.1% return
  2. Returns slightly understated - The return is not factoring the effect that the interest will have on your tax return - it is tax deductible.
  3. Low chance of a margin call.
Let's talk about #3. Margin calls are without a doubt the scariest part of margin lending, and i don't blame you for being afraid of them. Many people who leverage too aggressively and fly too close to the sun get hit with a nasty cycle where:
  1. Their investment falls into margin call territory because it has dropped
  2. They are forced to sell their assets at the worst points in the market to get out of the margin call
  3. they miss out on the recovery because their excess cash was used covering margin calls on the way down.
But this is where a 35% LVR is so appealing. the calculation to figure out where your margin call will happen is:
1-(Loan/(Lending Value + Buffer)).
So if we take a standard favourite of Ausfinance such as VAS, VDHG etc, we can see that they have a LVR of 75%. Industry standard buffer is 10%. so let's figure out a margin call on a $25,000 investment, with $14,000 borrowed funds (35% LVR):
1-($14,000/(($39,000*0.75)+($39,000*0.10))) = 58%
it would take a 58% drop in the portfolio to bring it to a margin call. This is the portfolio dropping from $39,000 to $16,470.
This requires a staggering drop before you experience a margin call, and if you are concerned reducing your LVR to only 25% will still improve your return and increase your chance of never being margin called.
You have time to add to your holdings with equity only (buying a dip + decreasing your overall LVR). the important thing is you can manage your risk and it requires truly a cataclysmic level of decline before you experience a margin call ,and at that point that may not be your biggest concern.

Why all the fuss? What's the point of risking being margin called?
It's all in that % return. in the following example i will use ASIC's compound calculator, along with the following parameters:
$25,000 initial deposit (your capital), $0 regular deposits, annual compounding, and a 30 year time horizon. The only assumption is that as the portfolio grows in capital value, the 35% LVR is maintained.
Case 1 - 0 LVR (AKA [email protected]%) - after 30 years of compounding at 8% you end up on $251,566
Case 2 - 35% LVR (AKA compounding at 10.1%) - after 30 years of compounding at 10.1% you end up on $448,291
Verdict - Case 2 ends up being $196,725 better. a 78% superior return
Every % matters so much in a long term strategy, it is truly impossible to overstate how important it is to long term outcomes.

Case Study: Super Showdown
As a final demonstration of the power of a low leverage strategy we will put two different cases head to head. Let us assume that a 30 year old intends to retire at age 65, and has the option of either having $50,000 in super, or invested at a 35% LVR.
After retirement, they will either 1. Take the money tax free in pension phase or 2. pay capital gains tax by cashing out their own 'pension' each year, with their marginal tax rate being 30% (using the currently legislated but not implemented rates). Case 2 will overstate their tax slightly, as i will not scale it, i will just hit the whole thing at 30%.

https://preview.redd.it/86c7xcrc7lb51.png?width=530&format=png&auto=webp&s=045a1774106ac8d8ac848decb04bec9a142bdc52
We can see that with the CGT discount, paying 15% tax is actually better than paying a 0% tax rate due to the higher return. It's an out-performance of $508,681
But okay, i hear you, CGT discount may be gotten rid of, let's recalculate it with no discount:

https://preview.redd.it/yafmmg6p7lb51.png?width=530&format=png&auto=webp&s=d9ae4b0db5de48808ca202f7c6e40d599c34c065
Even without a CGT discount (and 30% flat is more tax than you'd pay on a CGT discounted method on the highest marginal rate currently) there has been an out-performance of $306,102

What do i hope you take away from this?
Even if you decide that the risk of margin lending is too much for you, or that i'm absolutely insane to choose an outside of super strategy that relies on borrowing to invest, i hope that i have given you something to think about.
the one thing i hope everyone takes away from this just as a general point is the sheer power of small changes in your long term return %.
I really strongly believe in conservatively leveraging safe and boring investments to boost that all critical return over the long term to create outstanding long term results.
minor edit: fixed up some grammar
submitted by Savings-Flounder to AusFinance [link] [comments]

Option spread vs naked position

What is the point of a spread vs simply a good prediction of a naked put or call?
submitted by IllChange5 to options_spreads [link] [comments]

How to Calculate Margin? - TradingBanks Initial Margin Calculation How to Calculate Free Margin? - TradingBanks Shorting Stocks (Basic Margin Calculations) - YouTube Margin Call Calculation

Three free calculators for profit margin, stock trading margin, or currency exchange margin calculations. Also, learn more about the different definitions of margin in finance, experiment with other financial calculators, or explore hundreds of other calculators addressing topics such as math, fitness, health, and many more. Accessing Margin Trading. If your account is Margin Qualified, you will be able to enable Margin Trading in your profile. Once you do this, you will be allowed to send orders that require more of an asset than you have, as long as your account has sufficient margin. Trading on margin is a common strategy employed in the financial world; however, it is a risky one. Margin is the money borrowed from a broker to buy or short an asset and allows the trader to pay The FxPro Margin Calculator works out exactly how much margin is required in order to guarantee a position that you would like to open. This helps you determine whether you should reduce the lot size you are trading, or adjust the leverage you are using, taking into account your account balance. MasterTrust Margin came up with a standard leverage policy. The Margin is the amount in trading account purchasing shares.In case of intraday trading and F&O trading, the Margin is likewise called Exposure and breaking point.. Getting related with MasterTrust will open roads for you to trade in both NSE and BSE for Equity exchange, NCDEX and MCX for Commodities trading and MCX-SX and NSE for

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How to Calculate Margin? - TradingBanks

Have you always wondered what it means to trade on margin? In this video, you’ll learn what margin trading is and if it is a strategy that could help you ach... How to Calculate Profit Margin With a Simple Formula in Excel - Duration: 2:51. ... Understanding Futures Margin Fundamentals of Futures Trading Course - Duration: 7:15. What is free margin and how to calculate this? This is a very common question, and we are here to show you what exactly you're asking for! Watch now and learn the manual calculation of free margin. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. How to calculate Margin in forex? This easy tutorial is dedicated to those traders who likes to calculate the old fashioned way. Check out our channel to watch more tutorial videos just like this.

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