πΈοΈCross-Margin Accounts
Core Markets leverages a cross-margin account system, where your entire portfolio acts as collateral for multiple positions. Traders deposit USDB as stablecoin collateral, enabling secure and stable trading foundations.
Advantages of Cross-Margin Accounts
Capital Efficiency: By allowing your entire portfolio to serve as collateral, you can open more positions with less capital upfront, enhancing your trading flexibility.
Risk Offset: Profits from one position can offset losses in another, potentially reducing the likelihood of liquidation.
Lower Margin Requirements: Overall, cross-margin accounts tend to have lower margin requirements compared to isolated margin accounts, since the risk is spread across the entire portfolio.
Risks and Considerations
Total Account Liquidation: The most significant risk with cross-margin accounts is that if your account's equity balance drops below the maintenance margin, Core will liquidate ALL positions in the account, not just the losing ones. This can result in a total loss of the positions you hold.
Complex Risk Management: Managing a cross-margin account requires a good understanding of overall portfolio risk, as adverse market movements can affect your total collateral value.
Account Management at Core
Core Markets provides a streamlined interface for monitoring and managing open positions, with automated calculations for margin and uPNL. This simplifies trading by offering a clear view of your portfolio's risk and performance.
Note: Core may offer isolated margin in the future. To accomplish this currently, traders can create multiple sub-accounts to isolate trades. Please note that you cannot transfer collateral between these sub-accounts.
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