As a leading digital asset derivatives exchange, OKX continuously enhances its margin infrastructure to optimize capital efficiency for traders. The OKX unified account has evolved from multi-currency margin mode to the advanced portfolio margin mode, offering tailored solutions for diverse trading strategies.
Key Concepts Explained
Fundamental Margin Terms (Applicable to Both Modes)
| Term | Definition | API Parameter |
|---|---|---|
| Equity | Total assets of a crypto in cross-margin accounts and isolated positions, including balances, floating PnL, and options market value. | eq |
| Free Margin | Margin available for trading (futures, options short positions). Calculated as Max (0, Crypto balance + Floating PnL – In use). | availEq |
| Available Balance | Crypto usable for isolated positions, spot, and options long positions. | availBal |
| Floating PnL | Aggregate unrealized PnL across margin, futures, and options positions. | upl |
| Account Equity | Total USD value of all cryptocurrencies in the account. | totalEq |
| Margin Level | Ratio of adjusted equity to maintenance margin + liquidation fees. | mgnRatio |
Portfolio Margin Mode Exclusives
- Risk Units: Derivatives grouped by underlying crypto (e.g., BTC-USDT, ETH-USD) for holistic risk assessment.
- Maintenance Margin Requirement (MMR): Calculated via stress tests across 9 risk dimensions, offering discounts for hedged portfolios.
- Initial Margin Requirement (IMR): Set at 1.3 × MMR.
- Scenario-Based Calculation: Simulates maximum portfolio loss under adverse market conditions.
Example Risk Unit: ETH Derivatives
- Includes ETH/USDT futures, ETH/USDC options, and ETH spot holdings.
Side-by-Side Comparison: Multi-Currency vs. Portfolio Margin
| Feature | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| Tradable Instruments | Spot, margin, futures, options | Spot, margin, futures, options |
| Collateral Assets | All account assets (tiered discounts apply) | All account assets (tiered discounts apply) |
| Option Valuation | Only short options count as margin | Both long/short options count as margin |
| Position Margining | Independent per instrument | Holistic per risk unit (delta hedging supported) |
| Best For | Single-directional traders | Hedged portfolios, large positions |
Real-World Scenarios: Margin Efficiency Compared
Case 1: Large Delta-Neutral Portfolio
Assets: 10 BTC
Positions: BTC futures, perps, and short options.
| Metric | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| IMR | $961,956 | $168,947 |
| MMR | $192,371 | $129,959 |
Conclusion: Portfolio margin reduces IMR by 82%, ideal for hedged strategies.
Case 2: Small Delta-Neutral Positions
Assets: 1 BTC
Positions: Mixed futures and perps.
| Metric | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| IMR | $106,374 | $8,132 |
Conclusion: Portfolio margin slashes initial margin needs significantly.
Case 3: Delta-One (Directional) Trading
Positions: Large futures exposure.
| Metric | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| MMR | $7,775 | $188,823 |
Conclusion: Multi-currency mode is more capital-efficient for directional bets.
Practical Tools for Traders
👉 OKX Position Builder
Simulate positions in both modes to compare IMR/MMR and optimize your strategy.
Demo Trading Steps:
- Multi-Currency Mode:
Trade > Settings > Account Mode > Multi-Currency Margin - Portfolio Margin Mode:
Trade > Settings > Account Mode > Portfolio Margin (Min $10K equity)
FAQs
Q1: Which mode is better for options traders?
A: Portfolio margin mode, as it values both long/short options for margin calculations.
Q2: Can I switch between modes easily?
A: Yes, via the Position Builder or account settings, but ensure equity > $10K for portfolio mode.
Q3: How does portfolio margin reduce costs for hedged portfolios?
A: By offsetting risks within risk units (e.g., BTC futures + spot), lowering MMR via delta hedging.
Q4: Are there discounts for collateral assets?
A: Both modes apply tiered discounts to asset USD values for margin purposes.
Q5: Is portfolio margin suitable for beginners?
A: Recommended for advanced traders with complex, hedged strategies due to its sophisticated risk modeling.