Click here to Login








Margin Cost Simulation

by QuantShare, 3160 days ago
Share |






In QuantShare, you can simulate a strategy that buys on Margin by editing the trading system, selecting the "Settings" tab, clicking on "Capital" then updating the "Margin Factor" field.
When trading U.S. stocks, you can for example set this value to 2 or you can set it to a higher number if you trade CFDs.

Buying on margin is borrowing money from your broker to purchase a security. It is like a loan granted by your brokerage.
Borrowing money comes with a cost. You will have to pay an interest on your loan.

This money management script allows you to simulate this cost and see its impact when backtesting your trading system.
You can either specify a fixed interest rate (Fixed interest rate field) or specify an interest rate based on a time-series (Example: federal funds target rate + a fixed interest rate).

The script will automatically calculate (for each trading day) the amount borrowed by your strategy and apply a daily interest rate to it. That amount is then subtracted from your equity. It is the interest amount you will need to pay to your brokerage.



Share This ->
Share |


You have to log in to bookmark this object
What is this?




Type: Advanced Money Management

Object ID: 1642


Country:


Market:

Style:

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects

Empty

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis


Fundamental Analysis



Random Blog Posts

Create a HTML or PDF Report of your Trading System Backtesting Results

How to Display the Year-to-Date Excess Return in a Pivot Table

How to Create Your First Meta-Strategy

QuantShare Trading Software: New Features in the 3.4.1 Version

How to Scan for Parallel Resistance and Support Lines

QuantShare Trading Software: New Features in the 3.4.0 Version

Advanced Tactical Asset Allocation Strategies

Create Your Own Tactical Asset Allocation Strategies

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
QuantShare
Features
Create an account
Affiliate Program
Support
Contact Us
Trading Forum
How-to Lessons
Manual
Company
About Us
Privacy
Terms of Use

Copyright © 2024 QuantShare.com
Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+
Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.