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IB Risk Navigator

Trading Term

The IB Risk Navigator is a proprietary risk management tool offered by Interactive Brokers that provides comprehensive, real-time analytics for assessing portfolio risk across multiple asset classes. It enables traders and investors to monitor potential exposures under various scenarios, including changes in market conditions, volatility, and time decay. The platform is particularly useful for managing complex portfolios involving options, futures, equities, and FX positions.

Risk Navigator supports scenario analysis by allowing users to stress test their positions using historical volatility spikes, changes in interest rates, or price shocks. It provides detailed views of Greeks such as Delta, Gamma, Vega, and Theta on a position-by-position or aggregated basis. With this granularity, traders can understand how different factors impact their overall portfolio and take preemptive action to mitigate risk.

For institutional traders and active investors, Risk Navigator is a critical tool for regulatory compliance, margin forecasting, and strategic planning. It aids in ensuring that portfolios remain within defined risk parameters and can be customized to accommodate different time frames or market assumptions. By integrating risk metrics into real-time decision-making, the IB Risk Navigator bridges the gap between trading execution and risk control.

The Risk Navigator can be accessed in two ways:

In Mosaic: Click the New Window button and select Risk Navigator.

In Classic TWS: Click the Analytical Tools menu option and select Risk Navigator.

When opening Risk Navigator, users can either view their current portfolio by selecting ‘Open My Portfolio’ or create a new What-If scenario by selecting ‘Open New What-If’.

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