MB Trading and Margin

[birdog]

Hi:

When placing the initial entry for a order on a currency pair with NT through MB Trading and then placing a Stop and a Limit in NT, there should only be the initial entry margin deducted from the MB Trading account from my understanding.

Because...the initial order is obviously passed to the MB Trading servers that deducts the initial margin and also the Stop. MB Trading does not require additional margin just a Stop to be placed.

However, if a Stop AND and Limit is placed for the initial entry order, then they will deduct another margin to cover both the Limit and the Stop.

My question is, NT does pass through the Stop immediately BUT HOLDS the Limit order in the NT platform as working locally on the machine. Then, if the Limit is hit then it will cancel the Stop and then pass the Limit to the MB Trading servers right (bottom line only 1 margin per trade/instrument is needed...not double margin)?

Is that correct and do you have more links explaining etc?

Greg

[NinjaTrader_PatrickH]

Hello Greg,

Thank you for your post.

The Limti Order (Profit Target) would be submitted and should return as Working, and the Stop Order (Stop Loss) would be returned as Accepted.

In either case the orders are submitted to MB Trading, the margin requirements will be on MB Trading's side and you will need to follow up with your broker on this matter for further details.

For information on where your orders reside please visit the following link: http://www.ninjatrader.com/support/f...ead.php?t=5349

Please let me know if I may be of further assistance.

[birdog]

Patrick:

Yea, I already spoke to MB Trading extensively on how they work it. That is what I thought (what you said) regarding NT handling. I have noticed on my real account that the stops show in light blue as "Accepted" by the broker and the limits showing green as "Working" by the exchange/broker.

Per here:

http://www.ninjatrader.com/support/helpGuides/nt7/index.html?order_state_definitions.htm

and

here:

http://www.ninjatrader.com/support/forum/showthread.php?t=5349

I know it is possible to only have the Limit order be residing on the NT platform only until that price has be touched by the market thereby canceling the stop with MB Trading first and then turning the Limit order to a immediate market order....this would then only require 1 margin from MB Trading by doing it this way.

So, what change do I need to make or specific order type I need to have my strategies make in order to ensure the Limit orders are only local on the machine until price hits it so it will effectively allow me to utilize only 1 margin deduction from my real/live account?

I have confirmed that, right now, every time I place a real/live order I am immediately charged 2 margins because it is not working at the present time.

Thanks for your help Patrick and any others who can chime in...



Greg

[NinjaTrader_PatrickH]

Hello Greg,

Thank you for your response.

Unfortunately, Simulated Limit Orders (Limit Order held on your PC) are not supported in NinjaTrader.

Please let me know if I may be of further assistance.

[birdog]

Is there a workaround such as some type of unsupported code I could replace my Limit Order code with to instead effectively say:

If price reaches X, then cancel the Stop order and immediately submit a market order?

Code you give some sample code that could do that?

Thanks Patrick...

[NinjaTrader_PatrickH]

Hello Greg,

Thank you for your response.

Do you plan on using Unmanaged or Managed Order methods?

For information on Order methods please visit the following link: http://www.ninjatrader.com/support/h...er_methods.htm

I look forward to your response.

[birdog]

Patrick,

Please assume a scenario of both managed and unmanaged. What would need to be done for either scenario?

Thanks...

[NinjaTrader_PatrickH]

Hello Greg,

Thank you for your response.

You would need to setup the condition to check the Close[0] against the set price level and then submit a Market Order.

Your Stop would need to be conditional as well, let's say if Close[0] isn't your price for the above condition then it is okay to have your Stop in place.

Managed Order method could look like the following:

if(myStopCondition && Close[0] != myCloseAtMarketPrice)
{
ExitLongStop(myExitPrice);
}

if(Close[0] == myCloseAtMarketPrice)
{
ExitLong();
}

Please let me know if you have any questions.