Unit of competency Outline
Date retreived
22/07/2026 3:51 PM AWST
22/07/2026 3:51 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Apply limits when trading
Apply limits when trading
Unit of competency
National Code
FNSFMK511A
FNSFMK511A
State Code
D4133
D4133
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081105 - Investment And Securities
Original Release Date
29/07/2014
Nominal Hours
55
Description
This unit describes the performance outcomes, skills and knowledge required to identify, respond to and periodically review trading limits set by an organisation.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Identify trading limits
- 1.1. Various types of trading limits in an organisation are accessed and accurately interpreted
- 1.2. The process for establishing trading limits in the organisation is identified
- 1.3. Organisational limits are documented and the process for communicating to relevant personnel is determined
2. Respond to trading limit breaches
- 2.1. The process for identifying trading breaches, including by whom, how and when and for reporting them to relevant personnel is established and complied with
- 2.2. The process for approving limit breaches and the person responsible for that process is determined
- 2.3. The organisational process for dealing with breaches for which there is no approval is identified
- 2.4. Consequences of a breach are managed according to organisational guidelines
3. Review limits
- 3.1. The process for determining the allocation of risk in the organisation is known and consistently applied
- 3.2. Factors that are critical in determining limits are identified and analysed
- 3.3. Relevant personnel are promptly informed of changes in trading limits
- 3.4. Changes to trading limits are communicated to relevant staff using relevant organisational processes
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Types of trading limits in an organisation may include consideration of:
outright risk
spread risk
stop loss risk (including slippage)
Value at Risk (VAR).
Relevant personnel may include:
colleagues
compliance monitoring personnel
managers, supervisors.
Approving limit breaches may involve:
breaches of limits being reported immediately by the dealer to line management. The escalation process for reporting and managing limit excesses should be clear and effective.
Organisational guidelines may include:
business rules of the exchange
credit limit
deal limit
industry association codes of conduct
loss limit
organisational codes of conduct
relevant regulations and legislation.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Types of trading limits in an organisation may include consideration of:
outright risk
spread risk
stop loss risk (including slippage)
Value at Risk (VAR).
Relevant personnel may include:
colleagues
compliance monitoring personnel
managers, supervisors.
Approving limit breaches may involve:
breaches of limits being reported immediately by the dealer to line management. The escalation process for reporting and managing limit excesses should be clear and effective.
Organisational guidelines may include:
business rules of the exchange
credit limit
deal limit
industry association codes of conduct
loss limit
organisational codes of conduct
relevant regulations and legislation.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
identify and monitor financial trading limits using a range of data sources
deal effectively and promptly with financial trading limit breaches following all required industry and organisational policies and procedures
access and comply with relevant legislation affecting financial trading.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to financial markets information.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
identify and monitor financial trading limits using a range of data sources
deal effectively and promptly with financial trading limit breaches following all required industry and organisational policies and procedures
access and comply with relevant legislation affecting financial trading.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to financial markets information.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR26 | FNSFMK511 | Apply limits when trading | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D722 | FNS51011 | Diploma of Financial Markets | Qualification |