1. A method for trading tranches of a position in a financial instrument held by an entity, the method comprising: (A) determining a suitable tranche size to be traded in a financial market; (B) determining a trade size of a tranche to trade in the financial market; wherein the trade size comprises a smaller of a size of the position and the suitable tranche size; (C) determining 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; and (D) placing the tranche in the financial market for execution if the absolute dollar value of risk remains the same or is reduced by executing the tranche.