How Does Cash Settlement Impact the Need for Large Collateral Requirements? ⎊ Path

How Does Cash Settlement Impact the Need for Large Collateral Requirements?

Cash settlement can potentially reduce the overall collateral needed because the clearing house only needs to secure the difference in value, not the full notional value of the underlying asset. However, the high volatility of cryptocurrencies often dictates that high margin requirements are still necessary to cover potential daily price swings.

How Does ‘Physical Settlement’ of a Futures Contract Differ from ‘Cash Settlement’?

How Does the High Volatility of Cryptocurrencies Impact Margin Requirements for Crypto Derivatives?

Why Is Variation Margin Typically Paid in Cash, While Initial Margin Can Be Non-Cash Collateral?

What Is a Major Risk Factor Unique to Cryptocurrency Options That Influences Margin Requirements?

How Does High Volatility Impact the Risk of the Option Writer (Seller)?

What Is the Difference between Physical Settlement and Cash Settlement for a Bitcoin Option?

What Role Do Smart Contracts Play in Automating and Securing Non-Custodial Derivatives Settlement?

What Is the Difference between a “Physical Settlement” and a “Cash Settlement” for Electricity Futures?