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Cinemizer

Buy trade position margin is 0

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Hi,

I am setting on UK CFD plattform a buy and a sell trade positions by https POST

https://ciapi.cityindex.com/TradingAPI/order/newtradeorder

after each other for 1000 PCS EUR/USD at the begining of my program and the web plattform shows, that the margin of the buy position in 0,00 !

The margin of the sell trade is every time not 0, showing the right marge value.

If I place later other buy trades, it works. The margin of the new trades will be not 0,00, but the right value. It means, my https POST must be OK.

Sometimes, if I place a new buy trade, the margin of the first trade with 0,00 margin, become the right value, or also if I close the sell trade.

It means, somehow the system does not show the margin, only later if I place or close other trades. But this is no every time, sometimes the first trade remains 0,00.
I attached a screenshot about it. It is german language, but you can find, what it means.
What does it cause ?


THX !

Trades.jpg

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Hello,

From the screenshot you have what is called a "hedged" trade, where you have equal and opposite sized trades in the same market. In this case you have bought 1000 in EUR/USD and have also sold 1000 in EUR/USD meaning you are effectively market neutral.

In these cases, you are only charged margin on one leg of the trade - the first position opened.

As you have also said, if you were to then place a further hedge trade for example by selling another 1000 in EUR/USD, then you will be charged margin only on the larger leg - the 2000 Sell position. The remaining 1000 buy position will continue to show zero for margin requirement. 

Did you mean to create a "hedged" trade or where you trying to buy 1000 to close your sell 1000 position?

Kind Regards, PM 

 

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