Platform Risk vs Custodian Risk Explained Clearly

Platform operational risk differs from custodian storage risk; both influence investor protection and asset security.

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Platform Risk vs Custodian Risk Explained Clearly

1 min read59 words
Platform Risk vs Custodian Risk Explained Clearly
Platform operational risk differs from custodian storage risk; both influence investor protection and asset security.
Certain brokerage platforms allow digital gold holdings to be pledged as margin for futures and options trading. However, a haircut of 10–20% is typically applied to  the account for price volatility. For example, ₹1 lakh worth of gold may provide only ₹80,000–₹90,000 in usable margin. This mechanism enhances capital efficiency but increases exposure to simultaneous market and collateral risk.
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