I have a couple of strategies to buy/short SPY index. It looks like Exposure calculation doesn't consider that I sometimes have opposing positions.
Suppose I have only two trades: one to buy 100% 'Position size' of SPY, and the other to short the same amount. My exposure should be zero. However, it is calculated as 200%.
Would you please explain?
thanks
Suppose I have only two trades: one to buy 100% 'Position size' of SPY, and the other to short the same amount. My exposure should be zero. However, it is calculated as 200%.
Would you please explain?
thanks
Rename
Exposure is the area of the equity curve less the cash. We're not evaluating individual positions for a hypothetical situation that probably would never occur.
If you buy and short 100% of SPY you think you’ve spent 200% of your account’s cash. Exposure is intended to measure how much cash is invested.
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