Question on margin (Selling long positions in a margin account requires margin checks)? by Rob Sauce

Rob Sauce INVESTOR

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I have setup a backtest using IB model.

My algorithm is designed to use 2x leverage.

In an attempt to give myself more control and prevent a margin call, in the OnMarginCallWarning() method I try to liquidate a long position of my choice, but I get an error in

"SecurityTransactionManager.GetSufficientCapitalForOrder()"

What I don't understand is why doesn't this order go through fine.

I would have expected that when selling a long position, no margin check would be required.

If selling short margin would be required, but selling a long position should always go through.

Am I misunderstanding how margin accounts work? Or is this a corner case that needs to be updated in the lean engine?

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Rob Sauce

Accepted Answer

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Jared Broad

Hi Rob! If you're long and closing a position it should close out but we still do a margin check incase you'll end up short. I think this is probably an issue with your algorithm & working with daily data - please share it to get more assistance. If you cannot share the algorithm itself please create a mock up example and send an email to https://www.quantconnect.com/support.

Rob Sauce INVESTOR

Update Backtest

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