Account Equity Overview
Account equity represents the total assets a user actually owns in their futures account. It's calculated as:
Account Equity = Deposited Amount + Realized P/L + Unrealized P/L
Realized Profit/Loss
- Refers to profits/losses from closed positions before contract settlement/delivery
- Counts toward account equity (usable as margin but non-withdrawable)
- Becomes withdrawable to trading account only after contract delivery
Unrealized Profit/Loss
- Also called "floating P/L" - reflects current open position performance
Margin Systems Explained
OKX provides two distinct margin approaches:
Cross Margin (Full Position)
- All account balances serve as position collateral
- Merges risk/reward calculation across all positions
- Pros: Higher capital efficiency
- Cons: Positions affect each other
Isolated Margin (Fixed Position)
- Uses fixed collateral amount per position
- Independent risk/reward calculation per position pair
- Pros: Limits loss to assigned collateral
- Cons: Lower capital efficiency
Margin Ratio Formula
Margin Ratio = (All User Margin) / (Required Position Margin) - Adjustment Factor
(Adjustment factors vary by contract type and leverage)
| Contract Type | 10x Leverage | 20x Leverage |
|---|---|---|
| BTC Contracts | 10% | 20% |
| LTC Contracts | 20% | 40% |
Key Strategic Considerations
- Risk Management: Isolated margin prevents position contagion
- Capital Allocation: Cross margin enables dynamic rebalancing
- Leverage Optimization: Higher leverage requires more careful monitoring
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FAQ Section
Q: Which margin mode is better for beginners?
A: Isolated margin is generally safer for new traders as it limits potential losses per position.
Q: Can I switch margin modes mid-position?
A: No, margin mode selections apply when opening positions and cannot be changed afterward.
Q: How does liquidation work differently between modes?
A: Cross margin considers entire account equity, while isolated only evaluates assigned position collateral.
Q: What's the main advantage of cross margin?
A: It provides greater flexibility by allowing unused margin to support other positions.
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Professional Tips
- Always calculate required margins before entering positions
- Monitor margin ratios closely during volatile markets
- Consider using stop-loss orders with isolated margin positions