Zomma Terms
Unrealized PnL
UPnL= buyers' unrealized PnL + writers' unrealized PnL UPnL reflects as the sum of unrealized PnL from both options buyers & writers.
Margin Balance
Margin Balance = Balance + Net (option premiums received - option premiums paid) Margin Balance reflects the sum of balance and net option premiums received & paid.
Equity
Equity = Margin Balance + Buyers' and Writers' real-time theoretical values of positions Equity reflects the sum of margin balance and real-time theoretical total values of positions acquired by both buyers & writers.
Available Balance
Available= Margin Balance- Initial Margin Available reflects the difference of margin balance and initial margin.
Initial Margin
Initial Margin = Real-time maximal risks exposure (10%) + Abs( Writers' total real-time theoretical values of positions )
Initial Margin reflects the amount of funds option writer should maintain in the account to proceed with options selling.
Real-time maximal risks exposure
Real-time maximal risks exposure = writers' position size * spot price
Utilization
Utilization = 1- ( Available / Equity )
Utilization calculates the amount of funds used in a specific pool.
Health Factor
HF= Equity / ( Initial margin + Buyers' & Writers' Real-time theoretical total values of positions )
HF reflects the status of healthiness of an individual account, calculates the division value of equity over the sum of initial margin and real-time theoretical total values of positions acquired by both buyers & writers.
Shares
Share reflects the proportion of funds in a liquidity pool owns by the liquidity providers upon liquidity addition.
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