Risk Limits

Risk Limits

Risk Limits Overview

The Setup application provides you with the ability to set risk limits for accounts and users in your company. You can use the application to set price and quantity limits for users, position and credit limits for accounts, and define actions to take when credit limits are exceeded or when orders cross in the same account.

You can configure product-specific position limits, product-specific order size limits, and exchange-specific margin limits per account. The limits apply to the account and all the sub-accounts in aggregate. Orders submitted with an account are checked against the limits of the account, as well as any limits on any parent accounts (i.e., risk is based on the combined positions and working orders of all accounts in the hierarchy).

Setup provides the following risk controls: