Dated Options

Margin requirements

Paradex supports two margin modes for Dated Options: Cross Margin for all users and Portfolio Margin (currently in beta for whitelisted users).

Cross margin

Margin=min⁡(Option Mark Price, Long ITM Fraction×Spot Price)\text{Margin} = \min\big(\text{Option Mark Price}, ~\text{Long ITM Fraction} \times \text{Spot Price}\big)

Cross margin parameters

ParameterIMRMMR
Premium Multiplier100%50%
Long ITM Fraction20%10%
Short ITM Fraction15%7.5%
Short OTM Fraction10%5%
Short Put Cap50%25%