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TK
Roundtable Knight
Posts: 167 Joined: Tue Apr 15, 2003 5:45 pm
Post
by TK » Fri Feb 24, 2006 7:03 pm
Tim or TBB users,
How does TBB handle margins for positions held in foreign markets?
(1) It assumes that the equivalent amount in USD is actually converted into a local currency when the position is opened and then converted back into USD when the position is closed.
OR
(2) It puts up the equivalent amount in USD for margin but without actually converting it into a local currency.
In other words, which of
the two scenarios described in Question #4 in this post would be adopted by TBB? And how do brokers usually handle this issue in real life?
sluggo
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Posts: 2987 Joined: Fri Jun 11, 2004 2:50 pm
Post
by sluggo » Fri Feb 24, 2006 7:28 pm
Forum Mgmnt
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Post
by Forum Mgmnt » Sat Feb 25, 2006 8:38 am
TBB assumes that the USD are converted to the futures' base currency when entering and then converted back upon exiting the position.
As pointed out in the other thread, this number can be different because of currency conversion losses or gains.
- Forum Mgmnt
TK
Roundtable Knight
Posts: 167 Joined: Tue Apr 15, 2003 5:45 pm
Post
by TK » Sat Feb 25, 2006 8:46 am
Thank you, sluggo and c.f..
mike168
Roundtable Knight
Posts: 142 Joined: Mon Jan 23, 2006 10:24 pm
Location: Australia
Post
by mike168 » Sat Feb 25, 2006 9:54 pm
c.f.
Will TBB convert back to USD during contract rolls?
What about exiting some of the contracts during partial exits / position reduction? Will the proceeds be converted back to USD in this case?
Thanks.
Forum Mgmnt
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Posts: 1842 Joined: Tue Apr 15, 2003 11:02 am
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by Forum Mgmnt » Sun Feb 26, 2006 9:34 am
Any exit, including contract rolls, partial exits, etc. converts back to $USD.
Even the open equity calculations at the close of each day account for the conversion back to $USD.
-c.f.
mike168
Roundtable Knight
Posts: 142 Joined: Mon Jan 23, 2006 10:24 pm
Location: Australia
Post
by mike168 » Mon Feb 27, 2006 2:23 am
Thanks c.f..