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Quantitative Finance · Glossary

What is Loan line, collateral mirroring?

Also known as: loan line · collateral mirroring

Definition 25.7 Markets III: Commodities, Energy and Crypto · Chapter 25 — Getting Access: Crypto Venues

A loan line is a credit facility from a venue or its affiliate that lets an institutional client borrow assets or trade on margin beyond its deposits, against collateral and a credit assessment. Collateral mirroring is the crediting, on a venue, of a trading balance equal to collateral that the client keeps with a custodian, which is the mechanism of off-exchange settlement (Chapter 15).

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