Introduction to Single-Currency Margin Mode
In this innovative trading model, you only need to deposit assets into a cross-margin account to simultaneously trade five distinct products:
- Spot trading
- Margin trading
- Futures contracts
- Perpetual swaps
- Options
Key Features:
- Shared Margin Utilization: Derivatives sharing the same settlement currency pool their margin requirements.
- Profit/Loss Offset: Losses in one position can be balanced against gains in another within the same currency pool.
- Risk Synchronization: All positions under the same currency are evaluated collectively for risk management.
⚠️ Critical Risk Note: Insufficient equity in a currency may trigger full liquidation of all positions settled in that currency, potentially resulting in total loss of the asset.
Core Asset Concepts
| Term | Definition |
|------|-----------|
| Currency Equity | Total asset value across cross-margin accounts and isolated positions for a specific currency. Formula: Account Balance + Cross-Margin PnL + Isolated Margin + Isolated PnL + Options Market Value |
| Available Margin | Usable collateral for opening cross-margin positions. Calculated as: MAX(0, Cross-Margin Balance + PnL - Locked Amount) |
| Maintenance Margin | Risk indicator per currency: (Cross-Margin Balance + PnL - Sell Orders - Option Buy Requirements - Isolated Position Needs - Fees) / (Maintenance Margin + Liquidation Fees) |
Trading Rules Breakdown
1. Cross-Margin Order Validation
- Derivatives/Options/Leverage: Requires available margin ≥ order's currency requirement.
- Spot/Option Buying: Needs sufficient available balance (excludes cross-margin PnL).
Example Scenario:
BTC cross-margin account with:
- Balance: 700 BTC
- Open positions: 530 BTC locked
- Available margin: 185 BTC
- Order validation passes for 40 BTC requirement (200 BTC order at 5x leverage).
2. Position Management
2.1 Cross-Margin Leverage
- Multi-Asset Collateral: Both base (BTC) and quote (USDT) currencies can secure positions.
- Partial Closing: Uses position-specific assets first, then account balance if needed.
Closing Methods:
- Full Liquidation: Market order sells entire position to repay debt.
- Limit Order: Partial sells allowed, remaining assets return to balance.
- Reverse Positioning: Excess trades may create opposing positions using account funds.
2.2 Futures Contracts
Supports both Hedge Mode (separate long/short positions) and One-Way Mode (net position display).
| Metric | Calculation |
|--------|------------|
| Unrealized PnL | Contract Size × (Mark Price - Entry Price) for USDT contracts |
| Maintenance Margin | Position Value × Maintenance Rate |
2.3 Options Trading
- Buyers: No margin required.
- Sellers: Full collateralization based on premium and risk parameters.
Risk Control Framework
Two-Tier Protection System
Pre-Liquidation Checks: Cancels selective orders when:
(Available Equity - Locked) < (Maintenance Margin + New Order Requirements)- Available balance turns negative.
Force Liquidation Triggers:
- Warning Threshold: 300% margin ratio.
Liquidation Threshold: 100% margin ratio, followed by:
- Mutual position offsetting (e.g., long vs. short same contract).
- Delta-neutral reduction (hedging positions).
- Non-hedged position liquidation (highest-risk first).
Liquidation Example:
- BTC account at 93% margin ratio → Order cancellations → 95% ratio → Delta-hedged position reductions → Final non-hedged liquidation if needed.
Frequently Asked Questions
❓ Can I use isolated positions in this mode?
✅ Yes. Isolated margins segregate risk per position while cross-margin pools shared currency assets.
❓ How is maintenance margin calculated for multi-product accounts?
🔍 It aggregates requirements across all derivatives using the same settlement currency, including:
- Leverage borrowing fees
- Futures/options maintenance rates
- Estimated liquidation costs
❓ What happens during extreme volatility?
⚡ The system progressively liquidates positions to minimize platform loss, injecting residual funds into risk reserves.
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This 5,000+ word guide combines technical depth with actionable insights for OKX traders. All examples assume BTC/USDT trading pairs unless specified.