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You set up and change product limits for specific gateway logins using the New Product Limit and Edit Product Limit windows.

You can access these windows through the Gateway Logins window, the Gateway Logins tab on the Edit User window, or by selecting Product Limitsfrom the User Admin menu.

Note: You can also create product limits per account or account group. For more information, refer to the Creating Product Limits for Accounts and Account Groups topic.

This section describes creating product limits from the Gateway Logins window.

To create a new product limit from the Gateway Logins window...

1. From theGateway Logins window, select a gateway login and then click Edit.
2. In the Edit Gateway Login window, click the Risk check checkbox to create and apply Product Limits.

3. In the Product Limits section of the Edit Gateway Login Info window, click New Product Limit.

   Note: To copy one of the product limits listed in the Product Limits table, select the product limit and then click Copy. To copy one of the product limits that are available to the Gateways listed in the Gateways section, click Copy from Existing and then select the product limit to copy.

   The New Product Limit window appears.

   

   Note: Product Limits created via the Product Limitswindow are available only to the users who are assigned to the MGT ID (gateway login).

4. Select or enter a value in the applicable fields as needed.

   Product Limit fields include the following:

   • Gateway: Specifies the gateway to which the limits apply.
   • Product type: Specifies whether this limit applies to an option, future, spread, etc.

   • Product: Specifies the product (e.g. FGBL ODAX, etc.) to which the limits apply. An asterisk indicates that the limit applies to all products of the specified product type, unless an additional product limit exists with a specific product.

     For example: Assume you have two product limits configured for the CME-A Gateway: for one limit the product is * (all products) with a maximum position of 10, and for the other limit the product is ES with a maximum position of 5. When trading ES, the account is limited to a maximum position of 5, and when trading all other products on the CME-A Gateway, the maximum position limit is 10.

   • Margin: Displays the margin that is currently configured for the specified product.

   • Additional margin (%): Specifies a percentage above or below the margin that a trader must have to trade the contract. In other words, additional margin increases or decreases the margin requirement when calculating risk limits.
   • Maximum order qty: Specifies a limit on the maximum individual order size that can be entered for a specified product. To set the order quantity to unlimited, enter 0.

   • Maximum position: Specifies a position limit for a given product; maximum position can have various meanings depending on whether it's related to a Future, Option, Spread, or Strategy. For details, refer to the Defining Maximum Position section of this topic.

     To set the maximum position to unlimited, enter 0.

     Note: If you enter 0 in the Max Ord Qty or Max Pos fields, the 0 is defined, converted to, and displayed as "Unlimited".

   • Maximum long/short: Limits the worst case total of long or short contracts per product. <!-- For more detailed information about using this limit, refer to the Defining Maximum Long Short section of this topic.--> To set the maximum long and short position to unlimited , enter 0.

     Note: The Maximum long/short feature requires a specific X_TRADER 7.8.

   • Trade Out allowed: Determines whether the trader can exceed maximum order quantity and/or available credit limits to reduce risk for the specified contract.

5. Click Save.

   Note: Use the Save and Add New functionality to add many similar limits.

The limit you created appears in the Product Limits section.

Defining Maximum Position

The following describes the differences in maximum position depending on whether maximum position is related to a Future, Option, Spread, or Strategy.

Note: The rules for configuring all other product types are identical to the rules for configuring futures and spreads, except that limits for energy product are configured in lots.

• Future: Limits the maximum outright futures position to the value in the Maximum Position field. In other words, it limits the maximum position (long or short) that a trader may accumulate at the product level (the sum total of all delivery months). Traders that only trade calendar spreads, for example, will never reach this limit because their positions in one contract offset the positions in another contract.

• Inter-Product Spread: Does not use the Maximum Position field for risk checking. To manage position risk on Inter- Product Spreads, you must enter both FUTURE and SPREAD type position limits for each of the products that comprise that Inter-Product Spread.

  For example, if the limit is 5, an account can buy 5 calendar spreads, because each contract in the spread is limited to a long or short position of 5. This check would also apply to the futures contract being traded directly, so in the previous example, no more futures could be bought in the contract that is long 5 and no more cold be sold in the contract that is short 5.

• Inter-Product Strategy: Limits the maximum contract level position for each call or put of a specific strike price and delivery month to the value in the Maximum Position field. The Maximum Position field does not put a hard limit on the number of strategies that a trader may enter; it only limits the position for each contract of a product.

  Note: To allow trading of spreads or strategies, you must also configure product limits for the products that comprise the spreads or strategies.

• Option: Limits the maximum option position to the value in the Maximum Position field. In other words, limits the maximum position (long or short) that a trader may accumulate at the product-level (the sum total of all delivery months at all exercise prices). For the purposes of risk checking, calls and puts are treated as separate products. For example, buying a call and selling a put will not result in a flat position, but instead will result in two separate positions that do not offset each other.

Note: To allow trading of spreads or strategies, you must also configure product limits for the products that comprise the spreads or strategies.

Note: The rules for configuring all other product types are identical to the rules for configuring futures and spreads, except that limits for energy product are configured in lots.

Copying from existing product limits

To copy existing product limits to a gateway login...

1. From the User Admin menu, select Gateway Logins.
2. From the Gateway Logins window, click the gateway login you want to edit, and then click Edit.

   

   Note: In a non-X_TRADER ASP environment, the Add to Guardian option must be checked for product limits to be enabled. This option is only available in non-X_TRADER ASP trading environments.

3. From the Product Limits section of the Edit Gateway Login window, click Copy from Existing.
4. From the Copy from Existing Product Limits window, select the rows that you want to copy.

   Note: Hold down the Ctrl key to select multiple rows.

5. Click Done.

   The copied product limits appear in the Product Limits pane.

6. On the Edit Gateway Login window, click Save.

   You have successfully copied existing product limits.