Strategy-Based Margining

What is Strategy-Based Margining?

Strategy-Based Margining meaning A method for setting margin requirements whereby the potential for gains on one position in a portfolio to offset losses on another position is taken into account only if the portfolio implements one of a designated set of recognized trading strategies as set out in the rules of an exchange or clearing organization. Also see Portfolio Margining.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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