3. Difference between leverage and multi
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Difference between leverage and multi

  • Y

    I have read through the page https://www.backtrader.com/docu/commission-schemes/commission-schemes.html? but I am not clear what is the difference between multi and leverage. Both seems to be multiplicator to apply to profit and loss calculations.

    Let's say I want to trade a futures contract, margin requirement is 5% of contract value and commission is fixed ratio 0.0001 of contract value. how to define the parameters in broker.setcommission(commission=?, margin=?, mult=20?,leverage=20?)

    Thanks for help!

    1
  • A

    In your case you will need to develop your own commisson scheme using the following post Docs - User Defined Commissions.

    No need to use leverage, define margin based on the price, fixed commission and mult. Usually mult is not defined as 1 / margin, but by future contract spec. Since I don't know what are you going to trade, then this need to be clarified.

    As of leverage - this is bts implementation of the broker loan if you want to buy stocks more than your funds allow you. More or less in details is described here
    Blog - BTFD (Buy The F... Dip)

    0
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