What is Power Token?
Balance Bar 101
Before introducing the P-Token, we will take a look on the Balance Bar first. This feature displays key metrics such as equity total, equity available, equity used, P/L (profit and loss), balance, and margin level.
Equity Total
The equity total indicates the overall value of a trader's holdings or balance. It is calculated as follows:
Balance + P/L
Equity Available
Equity available represents the funds they can readily access.
Usable funds for new trades
Equity Used
Equity used shows the portion of their equity currently tied up in trades.
Equity used in open trades
P/L (Profit and Loss)
The P/L displays the profit or loss generated from these trades.
Unrealized P/L from open trades
Balance
The balance shows the remaining funds after accounting for all transactions.
Your Account Balance
Margin Level
The margin level indicates the percentage of equity a trader has available for trading. It is calculated as follows:
(Equity total/Equity used)*100%
What are Power Token?
P-Token helps you open a trade using more funds than your equity total. In short, P-Token adds to the total funds in your trading account, allowing you to open more prominent positions and multiply your gains.
Your Equity + Power Token = Equity Available
It is worth noting that you can earn P-Token by completing specific tasks from your pocket-trader account or through in-campaigns.
Moreover, P-Token will always remain the same value with your balance at a 1:1 ratio and will only change value if your balance is less than P-Token given to you.
How To Use Power Token?
As previously mentioned, P-Token will help you open a trade using more funds than your equity total and will always remain the same value.
For instance, with a $50 equity total and $50 P-Token, your equity available will be $100.
Equity Total + Power Token = Equity Available
$50 + $50 = $100
If you open a trade using $60, what will happen is that $60 will be credited from your total funds available in your account (equity available), which in this case is $100, bringing your new equity available to $40.
Equity Total + Power Token = Equity Available
$50 + $50 = $100 (-$60 equity used)
Your new equity available for the next trade will be $40
Equity Available - Equity Used = New Equity Available
$100 - $60 = $40
Power Token Balance Ratio Protection
A 1:1 ratio safeguards your margin level.
Power Token balance ratio protection safeguards against potential account deficits in the event of unforeseen market volatility. Essentially, the Power Token balance ratio acts as a buffer, protecting a trader's account to avoid the trade going to stop out. If your balance drops below the P-Token to you, the P-Token will stay.
Example
For instance, when your balance is $100, you have $50 in P-Token (usable P-Token) available to protect your trade is going to stop out.
Balance : Usable P-Token
$100 : $100
When your balance falls to $40, P-Token will drop to $40 to stay at a 1:1 ratio with your balance, safeguarding your margin level.
Balance : Usable P-Token
$40 : $40
*Unusable P-Token: $10*
When your balance returns to $50, $50 P-Token will be usable again.
Balance : Usable P-Token
$50 : $50
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