Crypto Account Modes: Margin Sharing, Borrowing, and Portfolio Risk

Summary

The document explains how several trading account modes determine which instruments can be traded and how margin is calculated. In isolated margin, assets are ring-fenced, and the document says account modes do not otherwise differ. Margin-free accounts are limited to spot trading and long options. Single-currency cross margin allows multiple instrument types while settled positions in the same currency share margin, so gains and losses can offset.

Multi-currency cross margin calculates margin using the USD value of assets and describes automatic borrowing when a currency balance is insufficient but overall USD-equivalent equity is adequate. Overselling or contract losses can create a currency liability and interest. Portfolio margin uses a risk-based model to set requirements across spot, margin, futures, and options. The text is a feature overview, not a comparative risk analysis: it gives no margin formulas, liquidation examples, or account-specific requirements, so traders would need those details before assessing exposure.

Key ideas

• Isolated margin separates a portion of assets, while the described account-mode differences apply to cross margin.
• Single-currency cross margin shares settled positions’ margin within the same currency, allowing gains and losses to offset.
• Multi-currency cross margin bases margin on the USD value of assets and can create automatic borrowing liabilities.
• Portfolio margin uses a risk-based model to set requirements across several instrument types.
• The document omits formulas and liquidation examples needed to compare account risk in practice.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.