Comment on Policy change for trading in cash-settled commodities
commented on
24 Apr 2020, 08:00 PM
Hi This negative rate of crude oil vs margin related liability happens because of your software issues. Means software is developed assuming that rate is always positive and when the rate goes negative margin will be calculated instead of debit to client software calculates credit to client. That means more margin is available and client can do more trade. If the software does not assume rate is positive then this reverse margin can be avoided and so broker house liability. Always take absolute figure of rate instead of assuming rate is positive. That means whether rate is negative or positive client will always debited with the required margin. I don’t follow the logic of 300%, suppose the rate is 300% negative what is the solution. Use this function “ABS(Rate) * Margin” (use relevant syntax as per the language). I hope this will solve. Regards RCMurli zc6995