The Dealer Profitability Index (DPI) based on the maximum position, calculates the benchmark for the market potential supposing that the total position limit had been utilised. The actual result is compared to the average to produce a percentage number.

In this metric, it is assumed that the dealer will always be dealing at the maximum position limit allowed. It is a matter of conjecture, but it is considered by some to be unwise to expose all the capital at all time and also unfair to the dealer to be robbed of possibilities and flexibility. Turning the position from short to long or vice versa is also not realistically taken into account, as this can be a lengthy process with a big position.

The Dealer Profitability Index (DPI) based on the average exposure, calculates the benchmark for the market potential directly related to the amount that the dealer was exposed to the market over the duration of the session. The actual result is compared to the average to produce a percentage number.

In this metric it is possible that the dealer can score better than 100%, especially if a windfall profit is earned towards the end of a session. Overall though, it makes an interesting comparison to the DPI - Maximum Position Basis to see if the user could have done better by increasing the size of the positions.

The Dealer Profitability Index (DPI) based on the average RAROC position size, calculates the benchmark for the market potential using the average of the amounts recommended by the RAROC position size calculation as displayed in the Real Time Risk/Performance Analysis window of TraderMetrics. The actual result is compared to the average to produce a percentage number.

In this metric it can be seen how much of the market potential earned if the recommendations had been followed. More risk-aware dealing rooms would probably want to use this measure instead of the other DPI measurements.

The Real-Time DPI indexes provide an approximate measure of the final DPI value that the dealer will attain. This method is quite simple but correalates well with the post-session (iterative) method, although the outright numbers may vary, depending on volatility and session duration.

However, the number in itself is arbitary and the real time number provides a guide for the dealer/mentor while the session is underway. The post-session (i.e. available in Statistics Viewer) should be the basis for historical data comparison.

The Real-Time DPI may be observed based on three criteria:

• Maximum Position Basis, whereby the calculation is based on the maximum utilisation of the position limit.
• Average Exposure Basis, whereby the calculation is based on the users average exposure
• Average RAROC Posoition Size Basis, whereby the calculation is based on the recommended position size according to the volatility of the session, the capital applied and the confidence level.

In each case, the DPI Basis amount is the amount being calculated as the session is underway and usually will get larger as time progresses. The DPI Value is the percentage of the net profit and loss to the DPI Basis amount. Note: This can be over 100%.