The market is a controlled dynamic system. - page 97

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artmedia70:
No. Not on the balance. The balance may be less than the MarginCall value, but if there are excess funds (there are uncovered positions in surplus), then there is enough to support open positions and collateral funds. After closing all such positions, the balance will increase to equity. Not vice versa - the balance may be a billion-dollar, but if there are insufficient funds to maintain open positions (there are open positions in deficit) and funds have reached the MarginCall level, then without urgent funding to raise funds to the minimum level for maintaining open positions, the BC starts to close unprofitable positions to release margin funds, so that these funds will be enough to maintain other open positions. In this case the balance will fall upon closing another losing position. When all of them are closed, the balance will drop to equity. This is how StopOut comes. Exactly on the equity value.


Well, it reminds of the eternal argument "What came first: the chicken or the egg?

I don't think that's the main problem that needs so much attention.

 
avtomat:


Well, this reminds me of the age-old argument "Which came first, the chicken or the egg?"...

...

The chicken of course! Only, to become the chicken we see and to lay an egg, it has come a very long way. )))
 
avtomat:


Well, this reminds me of the age-old argument "Which came first, the chicken or the egg?"...

I don't think this is the main issue that needs so much attention.

Equity is primary here. And not just here. The balance is a consequence of closing a position (we do not take into account the primary deposit, because we need profit, not something that has been taken out of the family and is actually an expense item). The position is opened first and if the position is profitable, funds are accumulated, but the balance (as a fixed profit/loss) does not reflect anything yet. The balance will show a value only when the profit/loss is fixed, i.e. when the current equity is fixed. If a part of a profitable position is closed and the market moves in the required direction, the equity will become higher than the balance - some profit has been fixed on the balance. If the remaining part of the position goes down, well the market turns around, the remaining unclosed part of the position will go down and equity will be lower than the balance. If the position is held until the drawdown reaches the MarginCall level, in the hope of waiting out the loss, the position is likely to fail. Although we had something on the balance after closing part of the position, but the drawdown of the current funds led to the closing of the StopOut. Clearly, funds are paramount. The balance does not play any role here. You can forget about it and consider only the funds as real money. And funds are the real position in the account.
 
tol64:
A chicken, of course! Only to become the hen we see and to lay an egg, she has come a very long way. )))

The chicken has its origins in the dinosaurs, and so have all other egg-laying reptiles and birds.
 
yosuf:
The chicken has its origins in dinosaurs, and so do all other egg-bearing reptiles and birds.

- It all started with mammoths running around a small, round and slightly warm planet... but they couldn't do anything, so the monkeys came along...

- Okay, stop. Student, what's your question?

- Well... Radio tubes...

- Ha,and what do you want for your answer????

- ...er...three...

- Fucking...b...m...!! What "three"? TWO!!!

- ... Can't I have three?

- NO!

- ... and four ???????

 
yosuf:
The chicken has its origins in dinosaurs, and so do all other egg-laying reptiles and birds.

You have to look even further back. Start at least with elementary particles. That's the only way to figure out what came first and most importantly "how?". )))
 
tol64:
You have to look even further than that. At least start with elementary particles. That's the only way to figure out what came first and most importantly "how? )))

Like how... "Let there be light!!!"
 
artmedia70:
As in ... "Let there be Light!!!"

The main and primary thing is the phase!

The rest is the terminals.

 
 
avtomat:

Equity and Balance need to be swapped. ))
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