Product Risk Limits

For each account on the City Platform, an account needs to be given access to a product before the user can trade it. These are set on the 'Risk Limits' tab for an individual account view, or via the top-level 'Risk Limits' tab. For each product, there are eight risk limits:

Limit Required? Description
Future Clip Size Limit Yes The maximum order size for a future.
Future Net Contract Limit Yes The summation of the absolute value of all future positions across all expirations. A short position in one expiration date does not cancel out a long position in another expiration date; rather, the absolute value of each position is added.
Option Clip Size Limit Yes The maximum order size for an option.
Option Net Contract Limit Yes The summation of the absolute value of all option positions across all expirations and/or strikes. A short position in one expiration date / strike does not cancel out a long position in another expiration date / strike; rather, the absolute value of each position is added.
Spread Clip Size Limit Yes The maximum order size for a spread.
Spread Net Contract Limit Yes The spread contract limit is similar to the clip limit except that it looks at open spread orders, counting one for every spread order. Once a spread trades, it is as if you traded the outrights. The option and future net contract limits will account for options and futures in spreads. This is a mostly pointless limit which was implemented by request.
Daily Contract Limit No The maximum number of contracts that may be traded during a trading session. When trading spreads the total contracts will be taken into account, so a spread with two legs will be two total contracts.
Allow Net Short Options Yes May the account have a short option position?