OKX PM 2.0 spot hedging builds upon the PM 1.0 framework with significant optimizations, delivering lower maintenance and occupied margin requirements. This upgrade enhances capital efficiency (enabling more positions) while reducing risk exposure and improving position safety protocols.
Key Benefits of PM 2.0 Spot Hedging
- Integrated Risk Units: Links spot positions with derivatives (contracts/options) for unified hedging
- Dynamic Asset Allocation: Adjusts hedging ratios based on real-time portfolio values without locking collateral
- Negative Balance Protection: Supports hedging even with temporary negative equity
- Capital Efficiency: Higher leverage potential with reduced margin requirements
- Risk Mitigation: Automated safety checks during order placement and transfers
👉 Master advanced hedging strategies to maximize your portfolio performance.
Who Should Use This Feature?
Ideal for traders who:
- Have derivatives trading experience
- Maintain substantial spot holdings
- Seek cross-asset risk neutralization (delta-one strategies)
- Want to optimize capital allocation across products
Step-by-Step Web Implementation Guide
1. Account Configuration
- Navigate to OKX's trading interface
- Click the settings icon → [Account Mode] → [Portfolio Margin]
- Enable [Spot Hedging] and select your [Risk Unit]
Note: First-time users default to USDT hedging mode
2. Executing the Hedge (BTC/USDT Example)
- Spot Market: Buy X BTC in the spot trading interface
- Contract Market: Sell equivalent X BTC in perpetual futures
3. Monitoring Positions
Check real-time metrics under:
- [Positions]: View hedged spot quantities
- [Assets]: Track reduced margin requirements
Key Considerations:
- System simulates margin impact pre-execution; high-risk actions trigger adjustment prompts
- Risk units group derivatives by underlying asset (e.g., BTC-USD/BTC-USDT are separate)
- Portfolio Margin requires $10k+ net assets and options trading experience
Mobile App Implementation
- Access settings via the trading page's top-right icon
- Navigate: [Account Info] → [Trading Settings] → [Portfolio Margin]
- Repeat the web implementation's hedging process
Mobile interface mirrors web functionality with identical risk controls
FAQs: PM 2.0 Spot Hedging Explained
Q1: How does spot hedging differ from regular portfolio margin?
A: It incorporates spot holdings into risk calculations rather than treating them separately, creating true asset-neutral positions.
Q2: Can I hedge across different cryptocurrencies?
A: Yes, but they'll belong to separate risk units unless paired against the same base currency.
👉 Discover optimal hedging ratios for your specific portfolio composition.
Q3: What triggers a margin call in this mode?
A: Your aggregate risk unit exposure exceeding maintenance thresholds, calculated holistically across spot+derivatives.
Q4: Are there tax implications for hedged positions?
A: Tax treatment varies by jurisdiction - always consult a financial professional regarding offsetting positions.
Q5: How quickly do hedge adjustments take effect?
A: Changes reflect immediately in margin calculations during order placement.
For institutional-grade hedging tools and real-time analytics, explore OKX's advanced trading suite. All hedging strategies involve risk - ensure alignment with your investment objectives.