Position

The result of trades in a security are positions. There are two types of positions handled in the RiskWin framework: Actual Positions and What-If Positions.

Actual Position:

This type of position is used to identify an actual exposure in a security which has been allocated to an Actual Portfolio. Such positions are tracked in the accounting operations of the firm and impact the overall financial results of the firm.

An actual position results from creating a trade in a particular security and allocating that trade to an Actual Portfolio.

If the settlement date of the trade is the current date then that trade is considered to settle immediately and is reflected as an Actual Position in the specified Actual Portfolio. If the portfolio has an existing Actual Position in the trade security, then the new trade is netted with the existing Actual Position.

If the settlement date of the trade is a future date then that trade results in a new Actual Position in the specified Actual Portfolio. When the settlement date arrives, the unsettled Actual Positions in an Actual Portfolio can be netted with settled Actual Positions in a matching security by invoking the Settle All Positions command.

The net position in a security is tracked as a positive quantity for LONG positions and as a negative quantity for SHORT positions.

All accounting information tracked for an Actual Position is done in the transaction currency of that position's security. The accounting measures tracked for each Actual Position are:

What-If Position:

This type of position is used to specify a possible exposure in a security which could be taken in order to change the risk characteristic of a portfolio. Such positions are not tracked in the accounting operations of the firm.

What-If Positions can only impact the characteristics of the portfolio to which they are assigned. Furthermore, each What-If position can be turned ON or OFF in order to try different combinations of such positions during the analysis.

A What-If Position in a security is specified as a positive quantity for LONG positions and as a negative quantity for SHORT positions.

The What-If Position can also specify the date at which the position is expected to settle if it were to be traded.

If a What-If Position is activated by setting it to ON, then the following accounting measures are calculated and tracked: