What is portfolio margin

Thalex calculates margin requirements at the level of a portfolio of positions. This approach is referred to as ‘portfolio margin’.  

Portfolio margin works by creating a range of scenarios that simulate the impact of changes in the price of the underlying and volatility to calculate a maximum potential loss for the portfolio as a whole. This calculation reflects the net risk of your portfolio, meaning that your margin requirements can be reduced if you have hedged positions. Portfolio margin provides for capital efficiency as the lower risk inherent in a balanced portfolio of hedged positions is reflected in the margin requirements.  

Please see our Contract Specifications for more information.