How does OptionsHouse assess the riskiness of a clients account?
OptionsHouse monitors a client’s risk using a variety of tools. One tool that we share with our clients is the “Risk Viewer.” which can be found on the trading platform on the “Tools” tab. Using the “Market Risk” tab within the Risk Viewer, OptionsHouse evaluates “Slide Risk” on an individual symbol and total portfolio basis. Slide risk refers to the theoretical risk to a position, given a specified percentage change to the underlying symbol. For example, if you are long a $100 stock, we would evaluate the potential profit and loss to your account based upon that stock price changing $5.00, $10.00, $20.00 and $50.00 (in either direction).
