Cross Margin

Cross Margin positions share their margin between themselves when they have the same margin currency. When a position generates an unrealized loss, a portion of the available balance is reserved to cover the margin requirement of the position. When the unrealized loss of the position decreases, the margin is unlocked.

The first position to incur an unrealized loss locks the required margin, thus reducing the available margin for the other positions. When a cross margin position has an unrealized profit, the unrealized profit is available as margin for other cross margin positions on the same margin currency. This means that if one position is in loss while another is in profit, the profit from one position will cover the loss from the other, thus allowing for hedging.