This financial practice allows traders to use collateral from one type of digital asset to meet margin requirements for positions in another. It enables greater capital efficiency by pooling diverse assets within a single account to support leveraged trading across different markets. This can reduce the need for dedicated collateral for each individual position.
Context
Cross-asset margining is an increasingly discussed feature in advanced digital asset trading platforms. Current debates focus on the risk management implications, particularly how concentrated losses in one asset class might impact positions in others. The sophistication of these margining systems is a key differentiator for derivative exchanges.
U.S. regulators collaborate to streamline crypto oversight, enhancing market efficiency and establishing clearer operational guidelines for digital asset entities.
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