TT User Login and Risk Administration - Trading Technologies

TT User Login and Risk Administration
Position Limits: Options
New Risk
Component!
Options
Options are treated like Futures in regards to risk‐checking. With the new
pre‐trade risk component added in X_TRADER 7.8, Calls and Puts are
treated as separate products when performing position limits checks and
margin calculations. This means that on a given Option contract, buying a
Call and selling a Put will not offset each other at the Product level. The
Maximum Option Position and Max Long/Short are tracked and applied
separately to Calls and to Puts for a product. (Previously, the Option
Product risk check included both Calls and Puts.)
Maximum Strategy is applied to each individual contract.
The Product Type selected determines how the Maximum Order Quantity
and Maximum Position fields are taken into account.
Note: If the value for any of these fields is set to 0, there is no limit. (In TT
User Setup, when 0 is entered, the value automatically changes to
Unlimited.)
Maximum Order Quantity:
• If Product Type is "OPTION:"
‐ Limits the size of an order for an options contract to the value
in the Maximum Order Quantity field.
• If Product Type is "STRATEGY:"
‐ Limits the size of an order for any options strategy to the value
in the Maximum Order Quantity field.
Maximum Position:
• If Product Type is "OPTION:"
‐ Limits the maximum option position for the entire product to
the value in the Maximum Position field. In other words, limits
the Maximum Position (long or short) that a trader may
accumulate at the Product‐level (the sum total of all delivery
months at all exercise prices) across both Calls and Puts (in
X_TRADER 7.8 and TT User Setup 7.2).
Note: Prior to X_TRADER 7.8, the Product‐level position included
both Calls and Puts.
• If Product Type is "STRATEGY:"
‐ Limits the maximum Contract‐level Position for each call/put of
a specific strike price and delivery month to the value in the
Maximum Position field.
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