Differences

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--- administration:administration_risk_breakdown [2020/09/18 16:38] – [Explanation of byMarket Mode] rob
+++ administration:administration_risk_breakdown [2025/01/03 13:09] (current) – rob
@@ Line 1: / Line 1: @@
-====== CTS Risk Breakdown ======
+====== T4 Risk Breakdown ======
 ====== Position Limits ======
@@ Line 31: / Line 31: @@
 ===== Explanation of byContract Mode =====
-  * Futures: All positions are viewed as outrights on the front end, but the back end looks for all possible ways to arrange those outrights into spreads. Spread margin rates are applied to outright legs that can pair with other outright legs while outright margin rates are applied to any remaining unpaired outright positions.
+  * **Futures:** All positions are viewed as outrights on the front end, but the back end looks for all possible ways to arrange those outrights into spreads. Spread margin rates are applied to outright legs that can pair with other outright legs while outright margin rates are applied to any remaining unpaired outright positions.
-  * Options: The same as options in byMarket Mode except that spread margin rates will be applied to option legs that can be combined to form basic option spreads (verticals, strangles, and straddles).
+  * **Options:** The same as options in byMarket Mode except that spread margin rates will be applied to option legs that can be combined to form basic option spreads (verticals, strangles, and straddles).
 ===== Explanation of byAccount Mode =====
-  * Futures and Options: All positions are viewed as outrights on the front end, but the back end looks for all possible ways to arrange those outrights into spreads. Spread margin rates are applied to outright legs that can pair with other outright legs in the following spreads: futures calendars, long futures to long puts or short calls (1:2 ratio, same expiration), short futures to short puts or long calls (1:2 ratio, same expiration), as well as verticals, straddles, and strangles in options. All options in this mode use margin, regardless of whether they are long or short.
+  * **Futures and Options:** All positions are viewed as outrights on the front end, but the back end looks for all possible ways to arrange those outrights into spreads. Spread margin rates are applied to outright legs that can pair with other outright legs in the following spreads: futures calendars, long futures to long puts or short calls (1:2 ratio, same expiration), short futures to short puts or long calls (1:2 ratio, same expiration), as well as verticals, straddles, and strangles in options. All options in this mode use margin, regardless of whether they are long or short.
 ===== Explanation of byAccount Day Mode =====
   * Identical to byAccount Mode except that only current day positions are considered.
   * Any positions from previous trading sessions are ignored.
 ===== Explanation of byPortfolio Mode =====
-  * The entire position is processed through a matrix of stress tests to determine how much margin is required for the account as a whole. This is designed to produce values very similar to SPAN and is by far the best system for the determination of margin that we offer.
+  * The entire position is processed through a matrix of stress tests to determine how much margin is required for the account as a whole.
+  * This is designed to produce values very similar to SPAN and is by far the best system for the determination of margin that we offer.
  ======  Risks to the FCM ======