How Unified Crypto Accounts Share Margin Across Trading Modes
Summary
The document explains how an exchange unified account combines spot and derivatives trading in one account, and how different margin modes determine whether positions can share collateral and offset profit and loss. Simple mode has no margin trading; single-currency margin shares collateral among products settled in the same currency, while multi-currency margin extends sharing across currencies. Portfolio margin can also account for offsets between derivatives tied to the same index.
Cross margin pools risk across eligible positions, whereas isolated margin assesses designated positions separately from cross positions and other isolated positions. The text presents these features as ways to use capital more efficiently and manage account-level risk. It gives no quantitative comparison, worked example, or independent evidence that pooling reduces overall risk; shared collateral can also mean that losses affect funds supporting other positions. The document additionally describes the exchange’s account-mode switching steps and notes that open orders and positions must be cleared first, and that some modes may require an activation step.
Key ideas
- Unified accounts let traders access spot and derivatives markets within one account.
- Single-currency margin shares collateral and offsets PnL among products settled in the same currency.
- Multi-currency margin allows collateral sharing and PnL offsets across currencies.
- Portfolio margin can account for risk offsets between derivatives associated with the same index.
- Isolated positions are assessed separately from cross-margin positions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.