Each Global Derivatives portfolio runs one margin mode. Both are segregated models: margin is calculated on that portfolio only, per settlement currency.
Segregated Standard Margin (S:SM) | Segregated Portfolio Margin (S:PM) | |
|---|---|---|
How margin is calculated | Position by position, using fixed formulas per instrument type | Across the whole portfolio, by stressing price and volatility and taking the worst-case loss |
Offsets between positions | None | Yes — hedged positions (e.g. long call + short future, long perp + short dated future) require much less margin |
Long option value | Reserved; cannot be used as collateral for other positions | Counts toward equity and can support other positions |
Best for | Simple directional or long-only strategies | Hedged, multi-leg, basis and volatility strategies |
Margin requirement | Higher | Typically lower, but can rise quickly when hedges break |
Important: both modes margin the whole portfolio. Leverage is applied at the portfolio level, not per position. If equity in a settlement currency falls below maintenance margin, all positions in that currency are at risk of liquidation, not just the losing one.
Margin parameters are published in the trading interface and may be adjusted by CFM (for example, through margin multipliers) based on market conditions.
Need help?
Contact your Coinbase Account Manager or email primeops@coinbase.com. See also Get help and notifications for derivatives.
Note: Derivatives on Coinbase Prime are offered by Coinbase Financial Markets, Inc. (CFM), a futures commission merchant registered with the CFTC and a member of the NFA.
Disclaimer: Trading futures and options involves substantial risk and isn't suitable for everyone. Only trade products you understand, after considering whether trading suits your experience, financial position and investment goals. Leverage can work for you or against you, and losses can exceed the amount you deposit.
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