administration:administration_dollar_margin [Documentation]

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====== Dollar Margin ======

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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.

{{:images:dollar_margin_enablement.png?600|Example of enabling Dollar Margins role in firm setup}}

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===== 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.

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==== 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) |

{{:images:dollar_margin_inheritance.png?600|Example of Parent vs Child Margin Setup}}

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===== 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.

{{:images:dollar_margin_contract_level.png?600|Margin handling at contract level view}}

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===== 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**.

{{:images:fixed_margin_toggle.png?500|Fixed Margin toggle in contract settings}}

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===== 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) |

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===== 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**.

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===== 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.

{{:images:dollar_margin_admin_roles.png?600|Dollar Margin role configuration for child firm}}

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===== 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**.

{{:images:contract_limits_toggle.png?600|Per-firm contract limits toggle}}