Question about margin and possibility of margin penalty

#1

Lets say I have 1 lac in brokers account that is associated with Tradetron.
Broker is giving 5x - so I assume I can take up to 5 lac.

Now I have created a RSI based strategy with list of 30 stocks …and position will be 100 shares buy/entry

What will happen if margin is not enough in brokers account …will strategy automatically stop taking more entries because it will check if margin available is enough to take that entry ?
Or it will take the entry regardless and due to that it will lead to margin shortfall by exchange?

#2

//Not an investment advice

Your broker will give an error from RMS due to shortfall of margin, and the strategy on tradetron end should go into error state, which you will have to manage.

#3

U said broker will give error from RMS …so it will leak to margin penalty ?
Why won;t strategy stop taking more trades after it checks if there is enough margin …

what can we write in a algo code so it does not take more trades?

#4

As per my understanding of Tradetron, it does not have any inside about your profile on the broker side, all it knows is the strategy you create and once entered maintaining that till exit. I might be wrong though. Best to check with tradetron support via chat / email.

#5

How do I chat with them ? and can u share their support email ?

#6

You can login to your account and use the chatbox at the lower right hand side corner. Alternatively you can email them : [email protected]

1 Like
#7

You can get in touch with our support through below formats:

Also, Tradetron does not have information about your funds in your broking account. We only process strategy related conditions and will trigger orders according to conditions. Note that the strategy will go into error execution if there are not enough funds for the order to proceed.

You can check the below thread on how to manage Error Execution:

#8

I have the same problem, i am using Range break out strategy , when the margin money becomes insuficient the strategy goes to error mode and strategy stops working unless you click on Mange ,cancel and proceed manualy , so presence is required, I am looking for solution to see that the strategy keeps active even if the margin is found insuficient for executing this perticular order and continues to be in active state ,so that whenever a condition matches with other stocks it can execute. Help me Pl.