Graphical simulation.

If you are looking for an intuitive way to understand the payoff of your product, Graphical Simulation is the perfect feature.

Input the definition of a product in the software and use the “Graphical Simulation” tool to interactively simulate the evolution of the contract’s underlying assets. When a user changes the underlying levels simply by dragging the mouse the application computes the associated payoffs and displays the cash flows and levels (barriers, coupon levels, etc.).

The Graphical Simulation module use cases include, but are not limited to the below scopes:

Structuring: test exotic contracts during the pre-trade phase
Operational risk: check the correctness of product definitions
Sales: interactively simulate payoffs for clients
Documents: find and save scenarios to use in documents

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Figure 1: Cash flow payments are based on the movements of the underlying

Video 1: Simulating the behaviour of the product, generating random scenarios and observing changes in cash flows