When it comes to trade application tracking, stop loss limits are designed to limit the maximum loss that the bank is willing to take on a position. If this limit is reached, the dealer must close his position, even if he still has free position limit. It can also be moved to the overnight limit.
Maturity mismatch limit: This also makes a limit on the open risks in the individual terms can be specified in addition to the overall position limit yet. Thus, the maximum open position in intraday limit a trader are also limited by, for example an open position in the period up to 6 months is limited higher than for maturities up to 1 year.
Additional restrictions may limit or by an instrument which limit the risk of liquidity in each market and maturity limits, which will limit the maximum run time for individual instruments can be achieved.
Risk Management is responsible for establishing the limit and control and the development and monitoring of internal bank proprietary trading strategies. Among the supporting functions include the development and operation of information systems, detection or monitoring of business transactions and the monitoring of regulatory requirements.
The user can specify in proprietary trading between three different forms of organization.