How does margin affect Pine Script strategies in TradingView?

TL;DR
TradingView checks whether strategy equity covers the required margin; if not, orders are skipped or positions are trimmed via margin calls.

At a Glance


Difficulty	Intermediate
Time to implement	15-20 min
Category	Strategy Basics

Quick Actions

Why It Matters

Strategy leverage settings (long/short margin) change how TradingView validates every order. Oversized trades may be cancelled, or existing positions can be forcefully reduced. Knowing the rules lets you size positions correctly and detect when margin prevents trading.

Quick Reference

Call	Purpose
`strategy(initial_capital, margin_long, margin_short)`	Configures available margin/leverage.
`strategy.equity`	Shows current equity used in margin calculations.
`strategy.order(...)` / `strategy.entry(...)`	Orders subject to margin checks.
`strategy.position_size`	Helps scale positions to avoid margin violations.
`strategy.closedtrades.exit_bar_index()`	Detects margin call exits (forced reductions).

Implementation Blueprint

Understand required margin
TradingView computes required_margin = price * quantity / leverage. Compare it with current equity.
```
canAfford = strategy.equity > requiredMargin
```
Detect skipped orders
When equity ≤ required margin, orders are cancelled. Log the condition to adjust sizing.
```
if not canAfford
    label.new(bar_index, high, "Order skipped: insufficient margin")
```

Handle margin calls on open trades
Equity loss below required margin triggers automatic exit orders. Monitor closed trades to flag them.

marginCall = strategy.closedtrades > strategy.closedtrades[1] and
    strategy.closedtrades.profit(strategy.closedtrades - 1) == 0

Example Playbook

//@version=5
strategy(
    "Margin demo",
    overlay=true,
    initial_capital = 10_000,
    margin_long = 5,   // 5x leverage
    margin_short = 5
)

posSize = input.int(2_000, "Contracts per trade")

if ta.crossover(close, ta.sma(close, 20))
    strategy.entry("Long", strategy.long, qty = posSize)

if ta.crossunder(close, ta.sma(close, 20))
    strategy.close("Long")

// Detect skipped orders
orderRequiredMargin = close * posSize / strategy.margin_long
if strategy.position_size == 0 and not na(strategy.opentrades.entry_bar_index(strategy.opentrades - 1))
    // already in a trade, skip
    na
else if strategy.order.filled("Long") == false and strategy.order.state("Long") == strategy.order.state_pending
    if strategy.equity <= orderRequiredMargin
        label.new(bar_index, high, "Skipped (margin)", textcolor=color.red)

// Highlight margin calls (forced exits have 0 mark-up)
if strategy.closedtrades > strategy.closedtrades[1]
    lastProfit = strategy.closedtrades.profit(strategy.closedtrades - 1)
    if lastProfit == 0
        label.new(bar_index, low, "Margin call", textcolor=color.orange)

Why this works.

Oversized orders relative to `initial_capital` trigger skipped trades when margin is insufficient.
Monitoring closed trades highlights when TradingView forces an exit to restore margin compliance.
Adjusting `posSize` or leverage quickly shows how margin settings impact execution.

Pro Tips & Pitfalls

TradingView never auto-resizes orders. If margin is insufficient, the order is cancelled—size positions yourself.
Margin calls produce zero P/L trades; interpret them as risk warnings.
Use realistic initial_capital and margin_* values to avoid misleading backtests.
For multi-symbol strategies, track equity across instruments because all positions draw from the same pool.

Troubleshooting & FAQ

Why doesn’t my strategy trade after a losing streak?

Equity may have fallen below the required margin for your configured position size. Reduce size or increase capital/leverage.

How do I simulate broker margin rules?

Tune margin_long/margin_short to match broker leverage, set initial_capital, and compute order sizes accordingly. Remember: TradingView uses simple margin = price × qty / leverage.

Key Takeaways

Margin determines whether TradingView executes an order or cancels it.
Maintain sufficient equity relative to required margin to keep trading.
Margin calls force partial or full exits—treat them as risk alerts.
Size positions programmatically so your strategy stays within margin limits.

Keep Going

Open AI Editor to apply the pattern with guided assistance
Browse Strategy Examples for ready-to-run templates
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Adapted from tradingcode.net, optimised for Algo Trade Analytics users.