tastyworks, a US-based equity brokerage, said on Wednesday that it had expanded its risk management functionalities to help traders analyze and manage their estimated risk in options, equity and futures trading.
According to the press release, with the risk analysis tool, traders can analyze profits and losses based on a percentage move up or down and generate risk arrays for all positions and queued orders. The new functionality calculates potential gains and losses at various price points, levels of volatility and future dates using current market prices. Additionally, traders can apply their own stress tests to the market and monitor the expiration risk of their options.
Based on the hypothetical percentage move in the underlying security, traders are able to adjust the underlying price and option-implied volatility, calculating the theoretical price of options and theoretical gains and losses. In addition, traders can calculate the risk of each symbol and the aggregated risk of their entire position by adjusting price moves and implied volatility in their positions.
“Our platform was built by traders for traders, and we remain focused on creating a dynamic experience, with better tools and methods to help traders understand and evolve their trading strategies. Clients understanding risk is very much a critical part of that strategy. Having a keen understanding of risk impacts a trader’s probability of success and influences a possible decision to trade any number of products that are uncorrelated or correlated. With better visualization of risk and option pricing models, traders can also make more informed decisions with multiple conditions or risk scenarios,” Scott Sheridan, the CEO of tastyworks, commented.
Zero Hash Partnership
In 2020, tastyworks signed a partnership with Zero Hash to offer crypto trading services to the stock traders on the platform. The integration allows the brokerage clients to trade Bitcoin (BTC) and Ethereum (ETH) from the same account they’re using in the firm.
