If you have $2,000 in Apple stock and $3,000 in cash, and you set a trading strategy to swing trade Amazon with 100% equity, TradersPost will base the trade on the total equity of your account. This includes both the market value of your stock positions and the available cash.
• Total equity = value of all existing positions at market value + cash.
• In this case, the signal will be sent based on $5,000 (the total equity), not just the $3,000 cash.
• Unrealized P&L is also factored into the equity calculation, meaning if you have unrealized gains or losses, they will affect the total equity figure.
If Apple stock rises, increasing your total equity to $6,000, a 100% equity trade for Amazon would be calculated on $6,000, not just your initial cash balance.