Risk Management

Any trading activity presents a certain risk, which, as a result of price volatility, can be enormous. The methods and procedures implemented for the assessment and control of risk in PSImarket effectively support the minimisation of risk in trading activities.

Benefits

  • Minimization of risk
  • Assessment and control of risk
  • Valuation of options
  • Evaluation of open positions
  • Sensitivity analysis
  • Determination of credit risk

Components

Basic Risk Management

  • In the framework of mark-to-market, every transaction is evaluated in comparison to the market or a user-defined, contract-specific price curve
  • Value-at-risk is calculated with a number of procedures

Evaluation of Options

  • Valuation by option type-dependent standard methods such as Black-Scholes
  • Valuation of swing options

Risk Controlling

  • Comprehensive and highly flexible limit system
  • Definition, allocation and monitoring of limits for physical and financial limits for the trading activity and the trading partner
  • Support of "for-eyes-principle"

Other implemented standard functions

  • Evaluation of open positions
  • Sensitivity analysis
  • Determination of current exposure
  • Determination of future exposure

Image Brochure

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Contact Us

Telephone: +49 (0)511 6101890
Fax: +49 (0)511 61018977

Kriegerstr. 1E
30161 Hannover
em-vertrieb@psi.de

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