Deribit Introduces Sub Accounts

After our big upgrade last Thursday we promised you a lot of new features and products in the coming period. Today we would like to present the first new feature: Sub Accounts.

Sub accounts allow for the separation of a portion of a trading account, both administratively and from a margining perspective. Every account can generate a maximum of 4 sub accounts that allow for the implementation of managed accounts and dedicated margin for certain trades or strategies.

Managed Accounts Possible

The sub accounts allow for the creation of separate login data but the sub account login does not give any right to withdraw funds. This means a manager or adviser could get access to a sub account and execute trades on behalf of the client without being able to withdraw funds or access the main account.

Isolated Margining of Trades and Strategies

Normally all positions in a Deribit account are cross-margined, this means that there is one pool of available margin for all positions and one sufficiently large liquidation could have a big impact. Sub accounts are individually margined so they can be used to allocate a certain amount of margin to a given trade or strategy.

Say for example that a trader wants to put on a risky trade or a new bot-based strategy; both of them should not impact the total amount of margin if they go wrong. These risky trades or strategies could be assigned to separate sub-accounts protecting the margin in the rest of the account.

Users can instantly transfer funds between the main account and sub accounts. This means margin can be increased and decreased at a moment’s notice.

Here is a video from our co-founder Marius made in order to explain this new functionality:

Stay tuned for even more upcoming products and features that the market has been asking for.