QUAESTOR
Day-Trader
®
Day-trading is currently available in all Quaestor offices. Investors can view positions real-time on screen, and place orders directly through Queastor's proprietary trading system with on-site brokers.
QUAESTOR Day-Trader
®
software system monitors investors' accounts throughout the day and ensures that all positions are closed out by the end of the day, unless they are fully covered.
Our clients are able to phone orders to brokers on a dedicated line (QuaestoPhone), or to use our e-broker site (WEB Broker) to execute their own orders.
Before offering day-trading to clients, Quaestor made a considerable investment in time and resources to fully realize the theoretical and practical applications of such a service. Through modeling and analyzing the risks of day-trading, Quaestor has created an advanced, comprehensive Risk Management and Control System.
The key characteristics of any day-trading transaction are: all open sell/buy positions created throughout trading hours have to be closed by the end of the day; and transactions need to be carried out at established margins.
The riskiest element of day-trading is the possibility that a position cannot be closed at the end of the day. This becomes an issue if the given security has limited liquidity (liquidity risk), if the price fluctuates to such an extent that trading is suspended (price risk), or if trades cannot be executed in the last trading period of the day (time risk). Quaestor's Risk Management and Control System continuously decreases the risk associated with open positions by monitoring these three factors. Through this mechanism, both Quaestor and its clients are protected from losses that may exceed coverage.
Key features of the Risk Management and Control System include:
- Low
transaction fees
- Immediate
allocation
- Active
risk evaluation
- Automatic
Coverage control (with the increase of the risk, the coverage increases until
the end of trading)
- Flexible
ability to be parameterised
- Price
and time sensitivity
Quaestor's computer system determines the total required coverage by adding the individual margin requirements of the securities listed in the day-trade portfolio (and the securities that are entering the portfolio by executing the order).
The computer system examines all positions every 15 minutes. Based on this examination, Quaestor's clients can decide on a partial or full closing of their positions. If the system checks the positions of a client and finds that all positions are not fully covered, the system automatically closes the position that has the highest price risk.
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