Questions in regards to positions sizes

Created at 29 Aug 2019, 12:32
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CenentiAlgo

Joined 28.06.2019

Questions in regards to positions sizes
29 Aug 2019, 12:32


Hi,

I think I know the answer to the following but just want to make sure:

Each broker sets different limitations in regards to the maximum number of positions you may have open as well as the maximum size allowed per position. Am I correct in assuming that the differences between brokers do not matter when it comes to the copying of trades?

My understanding is that it does not matter who your account is with, the money you allocate towards a strategy will be traded as if that money was with the same broker the strategy advisor is with.

Let me give an example, I'm just using some random made up figures here:

I'm with broker A who only allows 50 open positions and only 50 lots per position.

The strategy provider is with broker B who allows 100 open positions and 100 lots per position.

The Strategy Providers balance is US$500,000 and the amount I've allocated towards the strategy is the same, US$500,000.

If the strategy provider opens 100 trades of 100 lots these same positions will be executed on the balance I've allocated to his strategy meaning there will be no limitations as applied by my broker. So the limits that will apply will be that as set by the broker of the Strategy Provider.

Is this correct?

Thanks


@CenentiAlgo
Replies

PanagiotisCharalampous
29 Aug 2019, 12:40

Hi AddingAnotherZero,

No that is not correct. Your subaccount following a Strategy Provider will have to adhere to all rules set by your broker. You can read more about such limitations in our EULA, section 11.1. 

Best Regards,

Panagiotis


@PanagiotisCharalampous

CenentiAlgo
29 Aug 2019, 13:00

Thanks, read the EULA and now undestand how it works


@CenentiAlgo