Our margining system is set up such that with a high degree of certainty, every counterparty posts sufficient margin to cover potential losses from sudden price swings.

We achieve this through independent margin accounts for each instrument type. The total portfolio value of each margin account is continuously estimated and compared to the margin requirement arising from the open positions and open orders in that margin account.

The following sections describe how portfolio value and margin requirements are calculated and what happens if portfolio value falls short of margin requirements.