Tranches of a position in a financial instrument held by an entity are traded. A suitable tranche size to be traded in a financial market is determined. A trade size of a tranche to trade in the financial market is also determined. The trade size comprises a smaller of a size of the position and the suitable tranche size. An effect of executing a tranche of a size comprising the trade size on an absolute dollar value of risk associated with a portfolio of the entity is determined. The tranche is placed in the market for execution if the absolute dollar value of risk remains the same or is reduced by executing the tranche.