Will Selecting 100% Equity Send a $3k or $5k Signal?

Fact checked by
Mike Christensen, CFOA
August 5, 2024
When selecting 100% equity, TradersPost bases the trade on the total account value, including the market value of positions and available cash, so a $5,000 signal would be sent.

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.

Key Points:

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.

Example:

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.

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