How Does the ‘Margin’ Requirement in Derivatives Trading Act as a Defense Mechanism Similar to Collision Resistance?

Margin is the collateral deposited by both buyers and sellers of derivatives to cover potential losses and ensure they can meet their obligations. This financial requirement acts as a defense against default risk.

Collision resistance in hashing acts as a defense against integrity risk. Both mechanisms impose a high cost or computational barrier (margin or hash power) to deter malicious or risky behavior (default or fraudulent transactions), thereby securing the respective system's integrity.