What you will learn
- Event restrictions
- Overnight exposure
- Position limits
- Copying and automation conditions
Event restrictions
Event restrictions may apply to entry, holding, exit or a window around specified releases. Record the exact action and interval covered. A vague personal rule to avoid news may not match the contractual definition.
Overnight exposure
Overnight and weekend restrictions depend on the instrument and account terms. An unfilled order that remains active can also matter. Check working orders as well as positions before a required cutoff.
Position limits
Position limits can be gross, net, per instrument or account-wide. Opposite positions may not offset under the rule's definition. Convert quantities consistently and include pending orders if the terms require it.
Copying and automation conditions
Copying and automation conditions concern behavior and account relationships, not merely software capability. Verify the applicable permissions before assuming that a technically possible workflow is permitted.
Worked example
A hypothetical account forbids holding after a cutoff. The learner closes the position but leaves a working order that fills later. Position-only checking failed to address the order that recreated exposure.
Try it yourself
Write a cutoff checklist covering positions, working orders, acknowledgement and subsequent reconciliation.
Show the worked solution
Inspect and resolve both positions and pending instructions under the terms, wait for relevant acknowledgements and verify the account state after the cutoff. Preserve the evidence rather than assuming that a local click completed the action.
Apply this to your course project
Model a hypothetical evaluation rulebook and identify paths that breach it despite positive P&L.
Keep the calculation inputs, assumptions and decisions with your work. Practical exercises are self-reviewed; the scored knowledge checks assess the questions shown, not an independent certification of practical competence.