Can a Trader Use Both Isolated and Cross Margin Simultaneously?
Yes, most major crypto futures exchanges allow a trader to use both isolated and cross margin simultaneously within the same account. The trader can designate certain positions to be isolated, with their own specific margin, while others use the shared cross-margin pool, providing flexibility for managing different risk profiles.
Glossar
Risk Profile Management
Calibration ⎊ Risk Profile Management within cryptocurrency, options, and derivatives necessitates a dynamic calibration of exposure limits, acknowledging the heightened volatility and non-normality inherent in these asset classes.
Isolated Margin Vs Cross Margin
Margin ⎊ Isolated margin and cross margin represent fundamental risk management choices for traders in cryptocurrency derivatives markets.
Isolated versus Cross Margin Risk
Risk ⎊ The core distinction between isolated and cross margin lies in the scope of risk exposure for a leveraged position.
Crypto Trading Platforms
Architecture ⎊ The design of the platform dictates its capacity for handling complex derivatives, including the speed of order matching and the integrity of the settlement ledger.
Isolated Margin
Leverage ⎊ Isolated margin represents a risk management protocol within cryptocurrency derivatives exchanges, enabling traders to allocate specific capital for margin requirements on a per-contract basis.
Risk Profile Balancing
Action ⎊ Risk Profile Balancing refers to the continuous, systematic action of adjusting a derivatives portfolio to maintain a desired exposure level across various risk dimensions, primarily the options Greeks.
Isolated Margin Concept
Concept ⎊ The isolated margin concept provides a risk management framework where collateral is allocated specifically to a single position.
Isolated Margin Limits
Function ⎊ Isolated margin limits serve as a critical risk containment mechanism, ring-fencing the capital dedicated to a specific leveraged position.
Isolated Margin Settings
Constraint ⎊ This setting confines a participant's collateral to a specific set of derivative positions, preventing losses from one position from being covered by collateral allocated to another.
Isolated Margin Account Type
Allocation ⎊ Isolated margin account type refers to a margin system where collateral is allocated specifically to a single open position or contract.