Calculating accurate Portfolio Weightings when using Lot Sizes
Portfolio calculations and the Efficient Frontier required accurate 'weightings' for each asset or position. But how can this be achieved when using position lot sizes? The issue is that lot sizes can't be reliably compared across different assets. Therefore, conversion to monetary amounts is required enabling portfolio calculations can be accurately undertaken.
This video shows how lot sizes can be accurately converted to monetary values, also taking into account the fact that different assets might use different calculation currencies.
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This is Episode 35 in the Darwinex 'Institutional-Grade Risk Management Techniques' Playlist: https://youtube.com/playlist?list=PLv-cA-4O3y979Ltr9wQ2lRJu1INve3RCM
Video Contents:
00:00 Calculating Accurate MPT Weightings when using Lot Sizes
00:26 Why Darwinex?
01:21 Adapting Lot Sizes to Monetary Values
04:44 The Lot Size to Monetary Value Conversion
06:48 Converting Asset Currencies to Account Currency
10:22 Summary and Next Series
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer