Margining

Cross Margin definition

All accounts utilize cross margin, which is a margining method where all available balance in a trader’s account is pooled together to back all open positions, rather than allocating separate margin to each position (isolated margin).

Users willing to trade in isolated margin mode can simply create subaccounts for each traded position (see subaccounting section).

Cross Margin features

  • Shared collateral: All positions share the same collateral pool, eliminating the need to allocate collateral separately per trade.

  • Risk efficiency: Unrealized gains on winning positions automatically offset losses on losing ones.

Together, these features enhance capital efficiency, enabling users to optimize leverage and maintain healthier margin ratios across their entire portfolio.

Calculating Cross Margin

Initial margin is the minimum net equity = collateral balance + unrealized P&L required to place an order:

Initial margin = position / max leverage

with position = quantity * current price

Maintenance margin = position / maintenance margin leverage

maintenance margin leverage is computed as a multiple of max leverage.

Last updated