Lately, I had a process to make some calculator that will, with a given danger worth for the deal, calculate the required buying and selling lot for buying and selling in futures on the inventory market. The duty has been set, and it’s wanted to hunt its resolution.
The very first thing I, in fact, went to the Web looking for data on this concern. Furthermore, right here he was very a lot shocked, discovering that this data is so particular that it’s virtually wholly absent from the community.
Having appeared via an unbelievable variety of totally different websites, the place he learn in regards to the calculation of loads in Forex, I noticed that he must do it himself. Beneath, in steps, it’s going to present an algorithm for easy actions that means that you can calculate the buying and selling lot for FORTS futures appropriately.
Nonetheless, earlier than we transfer on, he particulars the duty, in order that it turns into clearer why we’d like it.
You will have all heard about this idea as a “danger administration system” (or “cash administration system”) and doubtless heard in regards to the “mounted curiosity technique.” This technique is that when opening a transaction, we danger not all the quantity of the deposit, however solely an element, some small proportion. Most frequently that is 1-2% (“1% rule”).
So, now our process is to calculate the required buying and selling lot for the transaction, however not based mostly on all the quantity of the deposit, however solely on the share of the sediment that we are going to point out.
To start with, it’s worthwhile to get theoretical data in regards to the alternate commerce and perceive whether or not you want it? It’s essential to understand how the alternate commerce is organized in our nation. Along with inventory exchanges, brokers and merchants, regulators, self-regulating organizations, registrars, depositories, clearing organizations and clearing facilities, clearing homes and depositories are among the many gamers within the inventory market not solely within the US but in addition in any nation.
Additional, one ought to familiarize with such a phenomenon as a buying and selling terminal. After the dealer entered the acquisition or sale utility with the assistance of the terminal, earlier than coming into the alternate, it involves the buying and selling system of the dealer. Such programs are geared up with authorization and limitation instruments that will let you route the appliance to the market, and in addition give the consumer details about its standing and the present state of its portfolio. On the identical time, it’s important to know that many of the functions on trendy exchanges are generated by robots, for which brokerage programs have an API for connection.
Buying and selling robots could make a whole lot and 1000’s of functions inside seconds, so an important factor for them is pace. That’s the reason the work on the scheme “consumer (robotic) – brokerage system – the core of the alternate” can not fulfill all merchants – as a result of there may be an additional hyperlink within the type of a brokerage system. That’s the reason there was a expertise that permits optimizing this chain as a lot as attainable – direct entry to the alternate.
After gaining theoretical expertise and studying extra about applied sciences, many merchants go straight to buying and selling – and lose cash. Transferring steadily is important. It was for such a clean “understanding” within the specifics of the inventory market and the habituation to the chosen technique of buying and selling {that a} take a look at or digital alternate commerce was invented.
Along with software program, many merchants take note of the “iron” part of labor within the inventory market. Subsequently, earlier than significantly plunging into the world of alternate battles, it’s value exploring and the vary of devices for buying and selling – easy methods to know if any instrument may help make more cash.
