What Is ‘Cross-Margining’ and How Is It Facilitated by a Crypto Prime Broker?
Cross-margining is a risk management technique that allows a trader to use the collateral and profit/loss from one position to offset the margin requirements of another position, even across different products or exchanges. A crypto prime broker facilitates this by consolidating all of a client's positions and collateral across multiple venues into a single margin account.
This significantly increases capital efficiency for the institutional trader.
