Utilize the Portfolio Margin Model to Achieve Risk Netting Benefits Across Various Product Types and Positions

AFT offers the Portfolio Margin (PBM) model to professional investors as an alternative to the standard margin model.

The Portfolio Margin Model does not apply predefined margin requirements to individual positions or strategies. Instead, it assesses the overall risk level of the portfolio based on individual risk factors. The margin requirement is then determined based on the total risk of any specific related assets.

How to Enable Portfolio Margin?

Covered Financial Product Types:

• Stocks

• Stock Options

• CFDs*

• Futures

• Futures Options

• Index Options

*Applicable only to professional investors

Standard Margin Model

This model identifies a limited number of simple strategies and recognizes no more than two different position combinations for any specific related asset. Complex position combinations across multiple asset classes and option series are not recognized, resulting in no netting benefits.

Portfolio Margin Model

This model assesses the risk level of any specific combination of underlying risk factors, determining the margin requirement based on the total risk of any specific related assets.

Who Can Benefit from Portfolio Margin?

As a professional investor, you may benefit from using Portfolio Margin (PBM) if you:

• Utilize multiple positions across different types of financial products;

• Employ option strategies not recognized by the standard margin model;

• Trade multi-leg option strategies, such as butterflies and condors;

• Trade CFDs* in combination with options that share the same underlying risk factors;

• Trade calendar spreads in index options and CFDs* to achieve net margin offsets, thereby reducing overall margin requirements.

*Applicable only to professional investors

How Does the Portfolio Margin Model Work?

This model links various financial instruments to relevant underlying assets or "risk factors" (e.g., Tesla stock, the S&P 500 Index, or ETFs). The model identifies the relevant underlying risk factors across different types of financial instruments and calculates a risk factor for all positions to estimate the portfolio’s potential maximum loss for margin requirement calculation.

What Are the Risks of the Portfolio Margin Model?

Please note that there are risks associated with the Portfolio Margin Model. Enabling this model in your account may:

• Increase losses if leverage is higher than in the standard margin model;

• Increase volatility in margin utilization due to market conditions;

• Potentially affect how your account is subjected to forced liquidation.

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Utilize the Portfolio Margin Model to Achieve Risk Netting Benefits Across Various Product Types and Positions

AFT offers the Portfolio Margin (PBM) model to professional investors as an alternative to the standard margin model.

How to Enable Portfolio Margin?

Covered Financial Product Types:

• Stocks

• Stock Options

• CFDs*

• Futures

• Futures Options

• Index Options

Standard Margin Model

This model identifies a limited number of simple strategies and recognizes no more than two different position combinations for any specific related asset. Complex position combinations across multiple asset classes and option series are not recognized, resulting in no netting benefits.

Portfolio Margin Model

This model assesses the risk level of any specific combination of underlying risk factors, determining the margin requirement based on the total risk of any specific related assets.

Who Can Benefit from Portfolio Margin?

As a professional investor, you may benefit from using Portfolio Margin (PBM) if you:

• Utilize multiple positions across different types of financial products;

• Employ option strategies not recognized by the standard margin model;

• Trade multi-leg option strategies, such as butterflies and condors;

• Trade CFDs* in combination with options that share the same underlying risk factors;

• Trade calendar spreads in index options and CFDs* to achieve net margin offsets, thereby reducing overall margin requirements.

How Does the Portfolio Margin Model Work?

What Are the Risks of the Portfolio Margin Model?

Please note that there are risks associated with the Portfolio Margin Model. Enabling this model in your account may:

• Increase losses if leverage is higher than in the standard margin model;

• Increase volatility in margin utilization due to market conditions;

• Potentially affect how your account is subjected to forced liquidation.

How to Enable Portfolio Margin?

This is a prerequisite to becoming a professional investor

Please carefully read the risks associated with the Portfolio Margin Model

Please sign and submit the risk disclosure statement via the platform, or contact your client investment manager

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