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      tastyworks Adds Risk Analysis Tool

      Published: just now

      tastyworks Adds Risk Analysis Tool

      June 29,. 2022 - Online broker tastyworks, part of IG-owned tastytrade, has expanded its risk management functionality enabling active traders to analyse and manage the estimated risk in their options trading, futures trading and equity trading positions on one platform.

      The risk analysis tool enables traders to analyse profits or losses based on a percentage move up or down and generates risk arrays for all positions and queued orders in an easy-to-follow format. The new functionality determines possible potential gains and losses at various price points, levels of volatility, and future date in real-time using current market price inputs. Traders also have the ability to apply their own market stress test and monitor for their option expiration risk.

      “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,” said Scott Sheridan, CEO of tastyworks. “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.”

      The risk analysis functionality allows traders to adjust the underlying price and option-implied volatility, calculating the theoretical price of options and theoretical gains and losses based on the hypothetical percentage move chosen in the underlying security. Traders can also map out “what if scenarios“ by adjusting the price moves and the individual implied volatility in their positions to better calculate the risk of each symbol and aggregated risk of their whole position.

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