As a top-tier digital asset derivatives exchange, OKX continually enhances its margin infrastructure to optimize capital efficiency. The OKX unified account has evolved from multi-currency margin mode to the advanced portfolio margin mode. This guide explores their differences, benefits, and ideal use cases.
Key Concepts Explained
Fundamental Metrics (Applicable to Both Modes)
| Term | Definition | API Parameter |
|---|---|---|
| Equity | Total assets per crypto, including cross/isolated margins, floating PnL, and options value. Formula: Balance + Floating PnL + Options - Accrued interest. | eq (details array) |
| Free Margin | Margin available for trading. Formula: Max(0, Crypto balance + Floating PnL – In-use margin). | availEq (details array) |
| Floating PnL | Unrealized profit/loss across all positions (cross/isolated margins, futures, options). | upl (details array) |
| Account Equity | Total USD value of all cryptocurrencies. Formula: Σ(Crypto equity × Crypto price). | totalEq |
| Margin Level | Risk indicator: Adjusted equity / (Maintenance margin + Liquidation fees). | mgnRatio |
Portfolio Margin-Specific Terms
| Term | Definition |
|---|---|
| Risk Unit | Derivatives grouped by underlying crypto (e.g., BTC-USD, BTC-USDT). Margins are calculated holistically per unit to offset risks. |
| Maintenance Margin (MMR) | Calculated via stress tests across 9 risk scenarios per unit. Represents maximum potential loss under adverse conditions. |
| Initial Margin (IMR) | 1.3 × MMR. Ensures sufficient buffer for new positions. |
| Spot in Use | Spot allocated for delta hedging within a risk unit. Adjustable based on strategy. |
Multi-Currency vs. Portfolio Margin: Side-by-Side Comparison
| Feature | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| Tradable Instruments | All (spot, futures, options) | All (spot, futures, options) |
| Collateral | All assets, tiered discount rates applied. | All assets, tiered discount rates applied. |
| Option Valuation | Only short options count as margin. | Both long/short options considered. |
| Position Margining | Independent per instrument; no risk offsets. | Holistic per risk unit; delta hedging reduces margin requirements. |
| Best For | Single-directional traders, small portfolios. | Large, hedged portfolios; capital-efficient for complex strategies. |
Practical Examples
Case 1: Large Hedged Portfolio (6 Feb 2025 Data)
- Assets: 10 BTC
- Positions: Mixed futures/options (-35,000 BTCUSD futures, +3,500 BTCUSDT perps).
Multi-Currency Margin:
- IMR: 961,956 USD | MMR: 192,371 USD.
Portfolio Margin:
- IMR: 168,947 USD | MMR: 129,959 USD.
- Spot used for hedging: 8 BTC.
👉 Key Takeaway: Portfolio mode reduces IMR by 82%, ideal for hedged positions.
Case 2: Small Neutral Portfolio
- Assets: 1 BTC
- Positions: Balanced futures (-5,000 BTCUSD, +550 BTCUSDT).
- Multi-Currency Margin: MMR: 5,503 USD.
- Portfolio Margin: MMR: 6,035 USD.
👉 Key Takeaway: Margin differences are minimal; multi-currency may suffice.
Case 3: Delta-One (Single-Directional)
- Positions: -60,000 BTCUSD futures.
- Portfolio Margin MMR: 188,823 USD (vs. 7,775 USD in multi-currency).
👉 Key Takeaway: Multi-currency mode is cheaper for unhedged trades.
How to Simulate Margins
Demo Trading:
- Navigate to Trade > Settings > Account Mode.
- Select Multi-Currency or Portfolio Margin (requires >10,000 USD equity).
Position Builder:
- Compare IMR/MMR under both modes.
- Include existing positions to assess impact.
👉 Explore OKX's Position Builder for real-time simulations.
FAQs
Q1: Which mode is better for options traders?
A: Portfolio margin—both long/short options count toward margin, improving capital efficiency.
Q2: Can I switch modes mid-trade?
A: No. Liquidate positions before switching.
Q3: Does portfolio margin support spot hedging?
A: Yes. Allocate spot to risk units for delta offsets.
Q4: What’s the minimum equity for portfolio margin?
A: 10,000 USD.
Final Recommendation
- Hedged strategies: Portfolio margin (lower IMR, risk offsets).
- Simple/directional trades: Multi-currency (simpler, cost-effective).
👉 Start Trading on OKX to leverage these margin modes today!