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:
- Account Risk:
- Account position Limits — Set position limits:
- Credit Limits — Set a daily credit limit and define how P/L is calculated.
- Account Auto Liquidation — Set whether to liquidate an account when it exceeds its daily credit limit.
- Order Cross Prevention
- Position Transfer
- Pre-trade price controls
- Price reasonability (open trading)
- Price reasonability (non-matching market states)
- Maximum order quantity
- Product Margin
- Algo risk settings
- User Risk:
- Trading Kill Switch