We're very happy to announce that PowerTrade users now have SPAN margin enabled on their account!
Also known as Portfolio Margin, this margin methodology is crucial for options trading as it considers the value of all positions and assets when determining the margin obligation for your account.
It works by running 9 scenarios where the price or market volatility suddenly changes, and calculating the max loss for your account in each of those scenarios. The worst scenario then becomes your margin obligation. See our knowledge-base for the SPAN margin specification.
By enabling SPAN margin, it is now capital efficient to write options on PowerTrade as the margin requirement to do so will be much lower!
It also makes it far more efficient to trade strategies such as spreads or condors as your positions will now properly offset each other in the worst case scenarios, resulting in minimal collateral obligations.
Note that PowerTrade's contracts differ from other crypto options as the contracts are priced in USD rather than BTC. This means that your collateral value won't fluctuate with your position value, making it easier to maintain your margin requirement.
As we improve the functionality of the PowerTrade program, the zero fee promotion will soon come to an end. See the fee schedule for the upcoming fee changes.
In addition to this SPAN margin release, PowerTrade has a few more critical releases on the near term roadmap that will make PowerTrade the ultimate options trading platform, including Futures, Perpetuals, and Spot markets; a multi-collateral system, Android and Web interfaces, ETH options, strategy builder, and much more!
The PowerTrade Team