This refers to the proportion of a trader’s capital that must be deposited as collateral to support a leveraged position. It functions as a safety net, ensuring that the trader has sufficient funds to cover potential losses. Insufficient margin can lead to a margin call or liquidation of the position.
Context
Margin requirements are a key consideration for traders engaging in leveraged digital asset markets. Current discussions often highlight how different platforms set varying margin requirements, influencing trading strategies and risk appetites. The dynamic nature of these requirements, particularly in volatile markets, is a significant factor for participants to monitor.
Tokenizing MMF shares on a shared ledger streamlines margin delivery, drastically reducing counterparty risk and enhancing capital efficiency across the institutional ecosystem.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
