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What are the differences between reg t margin and portfolio margin in the context of cryptocurrency trading?

avatarbhagath kumar palakaNov 30, 2021 · 3 years ago1 answers

Can you explain the distinctions between reg t margin and portfolio margin when it comes to trading cryptocurrencies?

What are the differences between reg t margin and portfolio margin in the context of cryptocurrency trading?

1 answers

  • avatarNov 30, 2021 · 3 years ago
    Reg t margin and portfolio margin are two different margin requirements used in cryptocurrency trading. Reg t margin is the standard margin requirement set by the exchange, while portfolio margin is a more advanced margin requirement that takes into account the risk of the entire portfolio. The main difference between the two is that reg t margin is a fixed percentage set by the exchange, while portfolio margin is calculated based on a risk-based model. This means that portfolio margin can result in lower margin requirements for certain positions, as it considers the overall risk of the portfolio. However, portfolio margin may also require a higher level of account equity to qualify. It's important to note that the availability of portfolio margin may vary depending on the exchange and the trader's account size and trading activity.