Strategy-Based Margining

This Issue in United States

Concept of Strategy-Based Margining in Futures Trading

In this context of financial law, the following is a definition of Strategy-Based Margining: 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.