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Short Selling

Posted By dh 8 Years Ago
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dh
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Posted Friday March 13 2009

With all the problems in RightEdge with short selling (doubled position size, wrong cash value in the equity curve, orders rejected because of margin requirements etc.) I would suggest the following:

 

Forget the margin requirements for any kind of order!

It is not the responsibility of RE to take care of margin requirements. The trader or trading system developer is responsible to take care of this. Every instrument, every broker, every exchange, every country has different requirements. RE may give some support, maybe options per exchange or per symbol or whatever. But if I like to go short MSFT 50.000 USD, please let me do it, don’t double the size, because this is just wrong!

Just imagine I go short MSFT on the Swiss Stock Exchange. What are their requirements? Not your problem, it’s my problem to know the requirements.

 

To sum it up: Please treat short trades the same way as long trades or add an option to do so.

 

Votes: http://rightedge.uservoice.com/pages/general/suggestions/139445-short-selling

Posted Friday March 13 2009
I agree that RE should allow equity margin requirements to be set by the user, to accommodate various situations, including ignoring the issue altogether, or incorporating rules that may vary over time or by trading venue regarding long or short trades, and also non-margin accounts, margin accounts for trades held overnight, daytrading margin accounts for intraday trades, etc. And of course the short position doubling bug needs to be fixed.

I tried voting on this, but when I clicked on the number of votes I wanted to allocate, nothing happened, and I tried this repeatedly. I successfully voted previously on other matters.

Fully simulating margin handling, including maintenance margins as the stock price changes, may expand the scope of this project, so perhaps it can be split into phases, with the easy-to-implement part done soon.


Edited: Friday March 13 2009 by Steve2008
dh
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Posted Friday March 13 2009
On a great platform like this I would not mind having some smaller bugs, I can handle them, but my clients torture me with questions.

I agree, this could be implemented in a better way in future releases. For now, a OFF switch would be great.

Thanks, DH

Posted Friday March 13 2009
I concur that an off switch for the existing attempt at margin handling, plus fixing the double short position bug, are the top priorities on this issue.

I do not feel a pressing need for margin handling in backtesting or live trading, and there are other things I think should be of higher priority for the developers. If margin handling is implemented, it should be accurate, flexible and optional.

Posted Friday March 13 2009
I totally agree!!! Off is the right way to go with this. Also, fixing the behavior of short orders in general is highest on my priority list.

Thanks for creating this thread!

Steve

Also, I tried voting but it did not work for me either.

Posted Saturday March 14 2009
We'll be discussing strategies for this over the weekend to have something in place shortly.
Posted Thursday April 30 2009
Any news on that?
Posted Thursday April 30 2009
Yes. Get the latest build and you can specify your own short margin requirement.
Posted Thursday April 30 2009
Is this only in ED2?

If not, I am using ED1 b384, where is the option for that?
Posted Sunday May 03 2009
It is a feature of Edition 2.

lksf (4/30/2009)
Is this only in ED2?

If not, I am using ED1 b384, where is the option for that?


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