Difference between leverage and multi
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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!
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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
, definemargin
based on the price, fixedcommission
andmult
. Usuallymult
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 isbt
s 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)