What is margin requirement?
Updated over a week ago

Margin requirement represents the minimum amount of assets you must have in your balance to trade on a margin. You can check the margin requirements for each instrument on the EXANTE trading platform. Right-click on an instrument and select Instrument Info.

The Required Margin for an asset is calculated through an in-house risk management system, a variation of SPAN. This system assesses various scenarios to determine the worst potential loss a portfolio might incur over a specified period.

The model uses a set of parameters, including:

  • The quality of your portfolio

  • The risks associated with a chosen asset in the current market conditions

EXANTE uses inter-commodity spread credit between correlated underlying assets to establish margin discounts, considering covariation risk.

Note! Certain high-risk assets have standard and concentration margin requirements, which apply when the portfolio lacks sufficient diversification. Read more about concentration penalty here (https://support.exante.eu/en/articles/114090-what-is-concentration-rate )

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