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Cross Margining

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Dictionary Says

Definition of 'Cross Margining'

An offsetting position where market participants are able to transfer excess margin from one account to another account whose margin is under the required maintenance margin.

Also known as "spread margin".
Investopedia Says

Investopedia explains 'Cross Margining'

Cross margining allows a market participant to reduce the total margin payment required. This method is mainly used by financial intermediaries to reduce their systematic risk.

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