Trade Processing: Risk and P&L Reporting (Part 1)

Having executed and captured a trade into a front-end system, the trading institution now needs to track the deal through its lifecycle until maturity and any final settlement. This includes assessing and managing the ongoing risks, and calculating the profit and loss on each trade. We see how trades are marked to market and the unrealized profit or loss calculated. The means by which the risks are evaluated and managed are explored here.