Software for brokers, markets, and investors

Derivatives Trading

FinanceGear can be used to build a derivatives trading system with integrated risk management.

Pre-trade risk management limits customer losses to pre-established limits and guarantees that customers have enough cash to cover their margin calls at the end of the day. Using FinanceGear, customers can trade derivatives unattended without creating risk to the bank or broker.

Pre-trade risk management is based on the so-called "worst position" algorithm: the algorithm implements, in effect, a real-time margin call: when authorizing orders, FinanceGear computes margin requirements in real time. In addition, the algorithm takes pending orders into account in the worst possible scenario.

FinanceGear only authorizes an order if the customer has sufficient cash balance to cover his margin calls in the worst-case scenario.