Portfolio Margin Account: Full-Size Trading Rules

Introduction to Portfolio Margin

Portfolio Margin (PM) mode enables traders to simultaneously engage in spot, margin, perpetual, futures, and options trading within a single account while using a sophisticated risk model to determine margin requirements.

This risk-based approach evaluates combined positions across all product types, significantly reducing collateral demands compared to isolated margin calculations. The PM system balances adequate risk coverage with optimal capital efficiency by converting diverse crypto assets into USD equivalents for initial and maintenance margin assessments.

👉 Discover how Portfolio Margin maximizes trading potential

Activating a Portfolio Margin Account

To qualify for PM, users must:

• Maintain a minimum net equity of $10,000 USD
• Acknowledge understanding of PM mechanics
• Complete identity verification (KYC)

Note: PM mode will sunset its current version on January 21, 2025, with upgraded functionality forthcoming.

Risk Offset Mechanisms

OKX offers two PM operational frameworks:

1. Derivatives Mode

Positions are grouped by underlying asset (e.g., BTC-USD, ETH-USDT). Margin requirements are calculated per risk unit, allowing offsets between:

• Perpetual contracts
• Futures contracts
• Options (where applicable)

Key distinction: USD-settled and USDT-settled contracts form separate risk units.

2. Spot Hedging Mode

Incorporates spot holdings into selected risk units. When spot positions hedge derivative exposures, margin obligations decrease. Users select their hedging base:

Example ETH Risk Unit Composition:

Margin Calculation Methodology

Core Components

1. Maintenance Margin (MMR)

   • Stress-tested across risk units
   • Considers 21 market scenarios
   • Incorporates MR1-MR7 risk factors

2. Initial Margin (IMR)

   • Derived as: 1.3 × Derivatives MMR + Borrowing IMR

Risk Factors Breakdown

Mandatory Liquidation Process

Triggered when Margin Ratio ≤ 100%, the system executes:

1. Dynamic Delta Hedging (DDH)

   • Adjusts perpetual/futures to neutralize portfolio delta

2. Basis Risk Reduction

   • Targets highest basis-risk units

3. Standard Position Liquidation

   • Prioritizes positions improving account safety
   • Follows tiered size reduction protocol

Pre-liquidation warnings occur at 300% Margin Ratio.

Portfolio Simulation Tools

Traders can evaluate PM requirements using:

• Live position analysis
• Hypothetical portfolio testing
• Scenario-based MMR/IMR projections

Hover over margin figures to view risk exposures by:

• Underlying asset
• Product type
• Market condition

FAQ Section

Q: Can I use PM for isolated positions?
A: No. PM always evaluates your entire portfolio holistically.

Q: How often are margin requirements recalculated?
A: Real-time updates occur with each position change.

Q: What happens if my net equity falls below $10,000?
A: The system will automatically revert to standard margin mode.

Q: Are there fee advantages to PM?
A: Yes. Offset positions typically incur lower fees than isolated trades.

👉 Learn advanced PM strategies

Appendix: Technical Parameters

Price Shock Scenarios

Volatility Stress Tests

Note: All calculations use worst-case loss across tested scenarios.