Dollar Margin
Coming Soon!
Dollar Margins allow firms to define margin requirements using fixed dollar amounts instead of percentages. Parent firms set baseline values that child firms can match or exceed, but never go below.
1. Role Enablement
A PFT Administrator must first enable your Parent Firm for the *Dollar Margins* role.
Once enabled, all Child Firms must also be enabled for *Child Firm Margins* if they want to use their own settings.
2. Parent vs. Child Firm Margins
If Child Firm Margins are disabled:
- The child firm inherits and uses the parent firm’s dollar margins.
If Dollar Margin is set to `0`:
- The system defaults to the parent’s contract margin.
- If the parent also has `0`, the exchange margin is used.
Restriction:
- A child firm’s margin cannot be lower than its parent’s margin.
- Child margins may be equal to or higher than the parent’s, but never lower.
- This rule includes Auto Liq settings.
Margin Inheritance Example
| Firm Type | Day Margin | Pretrade Margin | Resulting Margin Used |
|---|---|---|---|
| Parent Firm | 500 | 630 | Parent’s own margin |
| Child Firm (Disabled Margins) | 0 | 0 | Inherits parent’s margin (500 / 630) |
| Child Firm (Enabled Margins) | 600 | 700 | Uses child’s own margins (allowed) |
3. Margin Handling at the Contract Level
Once firms are enabled, margins are managed at the firm contract level.
Both parent and child firms must define margin rules if independence is required. If no rules are defined, inheritance applies automatically.
4. Fixed Margin Rules
Fixed Margin must be enabled to use Dollar Margins.
If Fixed Margin is disabled at the child:
- Dollar Margin is not used.
- The account reverts back to percent-based margins according to the child firm’s Auto Liq settings.
Example:
- Child firm has 5% day margin.
- Parent contract margin = 10000.
- Effective child margin = 5% × 10000 = 500.
- If parent margin = 0 → child margin = 5% of exchange margin.
5. Example Scenario
The parent firm’s margins act as the floor — the child cannot set margins below these levels.
Example Setup:
| Firm | Day Margin | Pretrade Margin | Result |
|---|---|---|---|
| Parent | 500 | 630 | Baseline (minimum allowed) |
| Child | 600 | 700 | Allowed — higher than parent |
| Child | 400 | 600 | Not allowed — would revert to parent’s (500 / 630) |
Notes
- If both firms have `0` for Day Spread and Pretrade Spread Margin, they default to the parent’s spread margin settings.
- A Parent Firm Administrator can edit margin values for both parent and child firms.
- A Child Firm Administrator can only edit margin values for their own firm.
6. Administration and Configuration
In the Child Firm Setup, you can find the role to enable or disable Dollar Margins. Only a CTS Administrator can make this change.
For changes to the Parent Firm, the FCM must contact PFT to request modifications.
7. Contract Settings
When viewing Contracts, a toggle allows you to set limits per firm.
Within each firm’s Contract Settings, you will find the Fixed Margin setting:
- A Parent Firm Administrator can enable or disable this setting for all firms.
- A Child Firm Administrator can only enable or disable it for their own firm.
