- Kinds of Margin
[Margins for Exchange-traded Derivatives]
Margin is classified by the payer and payment time. The customer margin is paid by customers to members and the member margin is paid by members to the KRX. Initial margin is paid in advance of the order placement while Post-trading margin is paid after the market is closed.
- Composition of Margin
Initial customer margin comprises i) order margin for a new order, ii) net risk margin on holding open interest, and iii) profits and losses for settlement of transactions.
Post-trading customer margin is levied on the open interest at the time of the market close. Therefore, there is no post-trading margin for orders.