Position Builder

The position builder functionality is a self contained instance of the complete protocol.

A user does not need to leave the confines of the position builder if they do wish, there is no loss of generality in restricting oneself exploring it to the expense of all others sections.

Users are presented with the opportunity to build their own strategy by utilizing the Ithaca risk sharing building blocks; call and put options, digital call and put options as well as next auction and dated forwards.

A user can formulate a strategy that trivially includes only one leg; therefore recreating the functionality of the market section. For example; defining an order for a call option by selecting side, size, strike and entering a limit price can be submitted as a standalone strategy, by clicking on add strategy button, submitting to auction and actioning similarly for any risk sharing building block.

The power and flexibility of the position builder comes to the fore by adding as many legs as desired to the order one wants to submit. This combination constitutes a conditional order; which means that each leg can only be executed if and only of all the other legs get executed at the same time; it is an all, nothing or proportional fill. The limit order is further expressed as a net price of all the legs in additive fashion; both the user and the matching engine need to keep track of 1 price per conditional order. Moreover, the collateral optimization engine springs to life in these circumstances. A user need only lock in required collateral for the risk profile of the complete order, making more efficient use of scarce collateral.

The decomposable payoff diagram constitutes the tool that completes the array of supporting infrastructure; it shows both the net payoff profile as well as the hockey sticks at expiry corresponding to individual legs with an intuitive UI.

Last updated