Derivatives collateral currencies for clients in the EEA
This article is for clients residing in the European Economic Area (EEA). If you are located outside of the EEA, please see our articles here.
Multi-Collateral Linear Derivatives
The Multi-Collateral wallet allows traders the flexibility to deposit a variety of collateral currencies to back their positions. Neither base nor the quote currency is needed as collateral to trade and all collaterals are valued in USD for margining under a single wallet with cross or isolated margin.
Haircuts and conversion fees apply to non-USD collateral currencies.
The following collateral currencies are supported:
Collateral Asset | Ticker | Haircut | Conversion Fee |
|---|---|---|---|
Australian Dollar | AUD | 0% | 0.0% |
US Dollar | USD | 0% | N/A |
British Pound | GBP | 0% | 0.0% |
Canadian Dollar | USD | 0% | 0.0% |
Euro | EUR | 0% | 0.0% |
Swiss Franc | CHF | 0% | 0.0% |
Interest and auto-conversions can apply to unrealized losses uncovered by USD, depending on the value of the loss.
What is a haircut? When does it apply?
A haircut is a reduction in the USD value of a collateral asset that may be used as margin.
This applies to both non-USD funds in the margin wallet as well as non-USD unrealized Profit/Loss and funding.
Haircuts only apply to collateral for Multi-Collateral contracts.
Disclaimer:
Investment services in relation to derivatives are provided by Payward Europe Digital Solutions (CY) Limited (ex I.F. Greenfields Wealth Ltd) ("PEDSL-CY"). PEDSL-CY is authorised and approved by the Cyprus Securities and Exchange Commission (CySEC) for the provision of investment services. See Risk Disclosures here.
PEDSL-CY is authorised and regulated by the Cyprus Securities and Exchange Commission with licence number 342/17. PEDSL-CY is registered in Cyprus with registered number HE 356603 and registered office at Athalassas, 62, Mezzanine, Strovolos 2012, Nicosia, Cyprus
Multi-Collateral Linear Derivatives