Invalid leverage/margin calculation
imphocused opened this issue · comments
Is it possible to adjust how the leverage is calculated? On this broker (Dominion Markets, MT5) the calculations for crypto are off.
Hello imphocused!
The problem here is that the symbol's calculation mode is reported as SYMBOL_CALC_MODE_FOREX_NO_LEVERAGE, while in reality it looks more like SYMBOL_CALC_MODE_CFD is used.
In SYMBOL_CALC_MODE_FOREX_NO_LEVERAGE, margin is calculated as Lots * Contract_Size * Margin_Rate. The price of the symbol isn't taken into account or is taken care of by the Margin_Rate (reported by the broker's server).
In SYMBOL_CALC_MODE_CFD, margin is calculated as Lots * ContractSize * MarketPrice * Margin_Rate. This would yield a correct result here.
So, the broker should either fix the reported SYMBOL_TRADE_CALC_MODE or Margin_Rate on its server.
Hello,
Thank you for taking a look. I appreciate the feedback. I've relayed this to the broker support team, and even with screenshots there is some confusion on what I was talking about, so they may not be able/willing to resolve.
In any case, to help me better understand, I may be confused about the specification calculation. You mentioned:
"In SYMBOL_CALC_MODE_FOREX_NO_LEVERAGE, margin is calculated as Lots * Contract_Size * Margin_Rate. The price of the symbol isn't taken into account or is taken care of by the Margin_Rate (reported by the broker's server)."
On the MT5 page:
Forex:
The margin for the Forex instruments is calculated by the following formula:
Volume in lots * Contract size / LeverageForex No Leverage:
This type of calculation is also used for Forex symbols. But unlike the previous one, it does not take into account the trader's leverage:
Volume in lots * Contract size
If the script is detecting the symbol as 'No Leverage', then by default shouldn't the leverage be displayed as (1:1), instead of (1:<current ask price>)? In the original screenshot, the ask price of BTC at the time was 21362.300
Hello!
Here is what the MQL5 help file says about SYMBOL_CALC_MODE_FOREX_NO_LEVERAGE:
And indeed, if you open a trade of 1 lot, then you'll see that it takes 1/10 of margin, which is consistent with 0.1 Margin Rate application.
So, in reality, even though it says "Forex No Leverage", it would be 1:10 real leverage.
Doesn't look like a Position Sizer issue at this time.