Can Non-Linear Derivatives like Options Be Easily Cross-Collateralized?

Yes, options can be cross-collateralized, but their non-linear risk profile (due to Gamma and Vega) makes the risk calculation more complex than for linear products like futures. The margin required for an options portfolio must account for rapid changes in Delta and volatility exposure.

Exchanges use advanced risk models, often based on portfolio margining, to accurately assess the overall risk of the options and futures within the cross-collateralized account.