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Risk Management & Control
Along with the trading tools and multiple state-of-the-art trading platforms that Place Trade offers to help you invest successfully we also offer advanced technology that gives you the tools you need to manage and control your trading risk. While leverage may offer the opportunity for increased returns it may also move against you quickly when your investments take a wrong turn or during in a difficult trading environment.
Risk Management & Control
- At Place Trade we trade only exchange-listed products that are cleared through central clearing houses and are marked daily to external closing prices disseminated by the exchanges.
- Positions and resulting payable/receivables are automatically reconciled against external sources daily.
- We use a real-time margin system that continuously enforces limits on an account-by-account basis, and allows customers to monitor their margin cushion directly in TWS.
- Place Trader Workstation (TWS) provides sophisticated portfolio risk management via the IB Risk NavigatorSM, which is free to Place Trade clients.
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Risk Navigator offers an easy-to-read spreadsheet-style interface that lets you quickly identify exposure to risk starting at the portfolio level, with drill-down access to successively deeper levels of detail within multiple report views.
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To Further Manage Risk:
- All orders are automatically vetted on a per-trade basis.
- We do not hold CDOs, Subprime Debt, or Credit Default Swaps.
Real-Time Margin System
Our real-time margin system continuously enforces limits for each account, automatically liquidating positions if any individual account violates its limits at any time.
Real-time data shows you requirements for initial margin (at the time of the trade) and maintenance margin (when holding positions) to help you understand your trading risk at any moment of the day and react quickly to the markets.
Risk Navigator
- Keep a close eye on your risk levels using advanced trading and management tools.
- Risk Navigator allows you to easily monitor and adjust your risk profile in real time.
- Place Trader Workstation (TWS) provides sophisticated portfolio risk management via the Risk Navigator.
- This free real-time market risk management platform unifies exposure across multiple asset classes around the globe.
What benefits can traders enjoy with Risk Navigator?
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- View your entire risk in a single number while monitoring the total risk and direction of risk associated with a single position.
- View your portfolio risk for multiple asset classes and assess specific risk slices of your portfolio, such as risk by position, risk by underlying, and risk by industry.
- Create an editable, hypothetical "What-If" portfolio based on your actual portfolio to see how your risk profile might change based on changes, such as adding, closing, reducing or increasing positions.
- Create complex custom scenarios by editing the price, date and volatility variables that affect your risk profile.
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- Equity Portfolio Managers can use the Risk Navigator's advanced beta analysis to build their portfolios based on key concepts of the Capital Asset Pricing Model.
- Build, maintain and monitor positions in a separate area by building new portfolios.
- See how capital is being allocated on a day-to-day or even minute-to-minute basis.
- Use the Portfolio Relative P&L graph to see how the total value of your portfolio for a specific asset class (or a subset of your portfolio) will change based on a percent change in the price(s) of the underlying(s).
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For more information regarding margin and real-time market risk management; please view our Understanding Margin tutorial (courtesy of our clearing firm) or call us at 1-800-50-PLACE or 1-919-719-7200.
Options involve risk and are not suitable for all investors. For more information; please read “Characteristics and Risks of Standardized Options” before investing in options.
For a copy call 1-800-50-PLACE or 1-919-719-7200 or visit the OCC. There is no guarantee of execution. Orders will be routed to US options exchanges.
Any trading symbols displayed are for illustrative purposes only and are not intended to portray a recommendation.
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