Trading Dashboard - Equivalent Positions

Equivalent positions can be viewed via the window on the right of the GUI

The Positions window displays the total aggregate net currency/instrument balance exposure held across the viewed Compass book. This is not representative of the true open positions in the book.

The equivalent positions look at the portfolio of open positions and define for a given instrument the equivalent open risk for that instrument. It is a covarianccovariance based calculation related to the optimal hedge, for a given instrument this shows the trade that would optimally minimize the VaR of the portfolio - each trade is broken into the asset counterparts and bucketed into risk buckets, these are then reassigned into the most optimal hedge via instrument drivers. i.e. the optimal hedge would be the reverse of the equivalent position.

Each instrument has a given VaR contribution which is calculated dynamically to reflect the current market conditions.

Note if all of the trades in this list were conducted simultaneously it would result in an over hedge.