Trading Dashboard - Risk Explain Tab

Current equivalent positions for a tenant can be viewed by looking at the trading dashboard. They are displayed on the right of the UI

Equivalent position looks at the portfolio of open positions and defines for a given instrument the equivalent open risk for that instrument. It is related to the optimal hedge, which for a given instrument would be the size of trade that would minimise the VaR of the portfolio - each instrument has a given VaR contribution which is calculated dynamically to reflect the current market conditions i.e. the optimal hedge would be the reverse of the equivalent position.

The equivalent positions for the portfolio are also plotted as a time series so you can see historical risk, which can be useful in P&L investigations.

Currency bucket based positions are also displayed in the time series

Back to Trading Dashboard - Overview