Orders from managed accounts

Calculation of DA on a managed account depends on managed order amount allocation mode, DA mode on individual accounts belonging to managed group account and DA in % of maximum order volume set on managed account. So there are two different ways of calculation which are described below.

Note: DA in % of maximum order volume can be set on a managed account only if Proportional or Proportional: one lot minimum managed order amount allocation mode is used and at least one individual account belonging to the group has DA set in % of maximum order amount.

Case 1

Fixed DA managed order amount allocation mode is used. A managed account consists of

a)individual accounts with different DA modes: DA in lots/contracts and DA set in percentage of maximum order amount
b)or individual accounts with DA set in percentage of maximum order amount

When a user creates an order from this managed account, the managed order DA is calculated as the sum of resulting DA on each individual account.

For example (corresponds to a), managed account m112 consists of the following individual accounts with corresponding DA (Margin Requirement = 1000):

Acct #100 – DA in % = 10 %, Usable Margin = 50 000. Maximum order amount = 50 000 / 1000 (Usable Margin divide by MR) = 50. Resulting DA = 50*10% = 5.

Acct #101 – DA in lots / contracts = 3, Resulting DA = 3

Acct #102 - DA in lots / contracts =7. Resulting DA = 7.

DA of managed order = 5 + 3 + 7 = 15 lots (contracts)

Another example (corresponds to b): managed account m112 consists of the following individual accounts with corresponding DA (Margin Requirement = 1000):

Acct #100 – DA in % = 10 %, Usable Margin = 50 000. Maximum order amount = 50 000 / 1000 (Usable Margin divide by MR) = 50. Resulting DA = 50*10% = 5.

Acct #101 – DA in % = 20 %, Usable Margin = 100 000. Maximum order amount = 100 000 / 1000 (Usable Margin divide by MR) = 100. Resulting DA = 100*20% = 20.

Acct #102 - DA in % = 50 %, Usable Margin = 30 000. Maximum order amount = 30 000 / 1000 (Usable Margin divide by MR) = 30. Resulting DA = 30*50% = 15.

DA of managed order = 5+20+15 = 40.

Case 2

Proportional or proportional: one lot minimum allocation mode is used. A managed account consists of

a)individual accounts with different DA modes: DA in lots/contracts and DA in %
b)or individual accounts with one DA mode: either in % or lots/contracts.

With introduction of DA as percent of maximum order amount, managed accounts can have DA set in % of maximum order amount but only with proportional allocation modes. If the managed account has DA set in X % of maximum order amount, DA settings on individual accounts are ignored. When a user creates an order from such managed account, DA on each individual account equals X % of individual account’s maximum order amount. That is system uses group account DA setting for order calculation.

For example, DA of managed account is 50%. Managed account m112 consists of the following individual accounts with corresponding DA (Margin Requirement = 1000):

Acct #100 – DA in % = 10 %, Usable Margin = 60 000. Maximum order amount = 60 000 / 1000 (Usable Margin divide by MR) = 60. Individual account’s DA is ignored – managed account’s DA is used. That’s why resulting DA of individual account = 60*50% = 30.

Acct #101 – DA in lots / contracts = 3, Usable Margin = 100 000. Maximum order amount = 100 000 / 1000 (Usable Margin divide by MR) = 100. Individual account’s DA is ignored – managed account’s DA is used. That’s why resulting DA of individual account = 100*50% = 50.

Acct #102 - DA in lots / contracts =7. Usable Margin = 30 000. Maximum order amount = 30 000 / 1000 (Usable Margin divide by MR) = 30. Individual account’s DA is ignored – managed account’s DA is used. That’s why resulting DA of individual account = 30*50% = 15.

DA of managed order = 30 + 50 + 15 = 95 lots (contracts).

Note: For proportional: one lot minimum allocation mode lot distribution works still according to the mode’s rules. For example, if X % of the individual account’s maximum order amount equals 0.6 lot and it