Skip to main content

How Does the Concept of ‘Margin’ in Derivatives Relate to the Cost of Competing for Block Space?

Margin in Derivatives is collateral required to cover potential losses on a leveraged position. It's a risk management tool.

The cost of competing for block space is the Gas Price, a fee for transaction inclusion. Both represent a cost or collateral needed to engage in a financial activity, but Margin is for leverage risk, while Gas is for network resource consumption.

What Is the Concept of “Margin” in Derivatives Trading and How Does It Relate to Financial Security?
Compare the Capital Cost of a PoS Attack to the Energy Cost of a PoW Attack
How Do Segregated Witness (SegWit) and Block Weight Optimize Block Space?
What Is the Concept of a “Soft Fork” and How Does It Relate to Block Immutability?