PORTAX After-Tax Portfolio Analysis

Futures Editor allows an investor to trade Long and Short Futures within a portfolio and additionally construct Hedges and Cross Hedges with other assets. This involves setting futures contract Notional Value, Initial Margin and Maintenance Margin.

The user selected Leverage controls the futures return/risk exposure by adjusting cash reserves to cover margin.  The maximum Leverage is the ratio of the Notional Value to the Initial Margin.  By selecting less than the maximum Leverage,  additional cash reserves are allocated to the futures position to reduce the return/risk exposure.  This in turn reduces the possibility of a maintenance margin call that can disrupt other asset allocations in a portfolio by forcing selloffs to cover the margin call.