Understanding book structure (legal entity, business unit, strategy, and portfolio)

The legal entity, business unit, strategy, and portfolio form the foundational building blocks of the organizational hierarchy for a trader. These elements help segment operational, financial, and strategic activities across different divisions. Proper configuration ensures compliance, accountability, and alignment with corporate goals.

Example

For a natural gas company, the Legal entity might be "EnergyCorp LLC," with business units like "Wholesale operations" and "Retail services." A strategy could involve maximizing sales to industrial clients, while the portfolio includes contracts and pipelines supporting that goal.