Stress Testing Engine

Predict the impact of market gap scenarios for selected instruments or entire portfolio. Forecasts negative balances, triggered resting orders, company P&L and net exposure.

Centroid Risk - Stress Testing Engine

Why is Stress Testing important for brokers?

Sudden price gap movements during extreme or anticipated market events, such as at the market opening or during major news times, may cause significant impact on the P&L performance of broker. For this reason, it is vital for the brokers to have an ability to effectively forecast the risk/revenue consequences of various market gap scenarios on its exposure, in advance.

Centroid Risk software includes a revolutionary Stress Testing Engine that is specifically designed to help brokers predict the impact on total company performance, in case of sudden price gap scenarios for either a selection of instruments or for the entire portfolio.

How can the Stress Testing Engine benefit brokers?

The Stress Testing Engine uses a big-data technology, producing the results based on a real aggregated data of the broker. Regardless of the business size or the number of trading platforms used by a broker, the Stress Testing Engine offers a simple way to forecast the impact of anticipated market gap situations on total company performance, quickly, in a matter of seconds! It forecasts client’s negative balances, triggered orders (take profit, stop loss, buy limit, buy stop, sell limit, sell stop, and margin stop out), company P&L and net exposure, based on a pre-set simulated Price Gap percentage movement from the current market prices on the selected instruments. The forecast result displays two possible outcomes for the same Price Gap scenario – in favor and against the company, relative to the current net exposure results on the selected instruments.

Who will benefit from this feature?

CEO, COO, CRO, Risk Managers, Dealing desk, Operations Managers

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