real time trading decision making sys: more critical than risk sys

Look at pricing engine. Equally quantitative as risk system, but

* in reality(?) traders often don’t check risk numbers before placing a trade
* in fast markets you probably have to take risks and make trading decisions on the spot
* the more reliable risk numbers are more delayed and less useful in real time trading
* the more realtime risk numbers are less reliable. Look at VaR and stress testing.

Other parts of real time trading are also more heavily used than risk
+ market data
+ execution
+ algo trading
+ high frequency trading
+ smart router

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s