Cash Balance
Cash balance is the total amount of liquid money in an account, excluding the value of held assets. It reflects the money available for new trades or for meeting margin requirements.
It is an essential component of the total account value. Keeping a healthy cash balance is key to liquidity and effective risk management.
Glossary
Negative Balance Protection
Protection ⎊ Negative balance protection functions as a risk mitigation tool prevalent in cryptocurrency and derivatives markets, safeguarding traders from losses exceeding their initial capital.
Available Trading Capital
Capital ⎊ Available Trading Capital represents the liquid funds a trader or institution allocates specifically for executing trading strategies within financial markets, encompassing cryptocurrency, options, and derivatives.
Digital Asset Liquidity
Asset ⎊ Digital asset liquidity represents the ease with which a cryptocurrency or derivative can be bought or sold without causing a significant price impact, fundamentally linked to order book depth and trading volume.
Collateral Management Strategies
Risk ⎊ Collateral management strategies are essential for mitigating counterparty risk in derivatives trading, particularly within the volatile cryptocurrency market.
Smart Contract Settlement
Settlement ⎊ This is the final, automated execution of terms within a smart contract, finalizing the payoff or delivery obligations of a derivative instrument, such as an option or futures contract.
Settlement Funds Availability
Capital ⎊ Settlement Funds Availability represents the liquid assets an entity must possess to fulfill contractual obligations arising from derivative transactions, encompassing cryptocurrency, options, and broader financial derivatives.