What is Larger Exposure Side?

The larger exposure side refers to the side (Buy or Sell) with the greater total volume when a client holds positions in both directions. The smaller side is considered the hedging side, while the difference between the two sides represents the unhedged exposure.

Margin is calculated using the single side margin mechanism:

• When a client holds both long and short positions in the same instrument, margin is not charged separately for both sides. Instead, margin is calculated based on the larger position size, which improves capital efficiency.
• Example: If a client buys 3 lots and sells 4 lots, the margin will be calculated based on 4 lots.