New York-based online trading company E*Trade Financial Corporation has announced an upgrade to its suite of trading tools by adding the new Risk Slide tool on the OptionsHouse platform.The Risk Slide Tool enables traders to visualize how market events or changes in volatility could impact positions in their portfolio, and think strategically about how much they stand to lose or gain should the market move in a certain direction.
The tool is used to beta-weight to the S&P 500® Index and see P&L results, to view potential P&L numerically and graphically, to sort positions by largest or lowest risk levels, and to expand symbols to reveal risk details on individual positions. Traders can also group a selection of positions to understand how they may react to changing market conditions.
Christopher Larkin, Senior Vice President of Trading Product at E*TRADE Financial, commented:
“Identifying risk can be an overlooked aspect of managing a portfolio. With this launch, we aim to make risk management simpler by arming traders with the ability to visualize potential pockets of risk and stress test their portfolio through hypothetical market conditions. In this way, traders can now develop a more dynamic and easy-to-understand view of their portfolio and potential performance in various market conditions.”
E*Trade, which was founded in 1982, had 3.6 million brokerage accounts and a total margin receivables balance of $9.1 billion as of 31 December 2017. In 2017, 63% of net revenue was from interest income, 19% of net revenue was from commissions for order execution, 15% was from fees for order flow and management services, and 3% was from other sources. On September 12, 2016, E*Trade acquired the parent company of OptionsHouse for $725 million.
The company provides online trading services to both institutional and retail clients and has reported $2.366 billion revenue in 2017, with net income at $614 million. Total assets were worth 63.365 billion as of 31 December 2017 and total equity was valued at $6.931 billion.
