Definition ∞ Portfolio margining is a risk-based approach to calculating margin requirements for a portfolio of financial instruments, where the margin is determined by the overall risk of the combined positions rather than individual assets. In digital asset derivatives markets, this method can reduce capital requirements for traders by offsetting risks across correlated positions. It offers a more capital-efficient way to manage trading exposure. It is a sophisticated risk management technique.
Context ∞ The implementation of portfolio margining in digital asset exchanges is a growing topic of interest, particularly among institutional traders seeking more efficient capital utilization. Discussions often focus on the complexities of risk assessment for volatile digital assets and regulatory acceptance. Future developments will likely see broader adoption of portfolio margining as the digital asset derivatives market matures.
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