Introduction to Isolated Margin Trading
Isolated margin trading allows users to allocate a specific amount of collateral to a single position, limiting risk exposure to that position only. OKX offers three margin modes:
- Single-Coin Margin: Requires sufficient available balance of the traded cryptocurrency.
- Cross-Coin Margin: Evaluates overall effective margin across all assets.
- Portfolio Margin: Considers portfolio risk parameters for sophisticated traders.
Key Trading Rules
Single-Coin Margin Requirements
- Available balance of the traded cryptocurrency must cover the order amount.
Cross-Coin Margin Requirements
- Total effective margin ≥ occupied margin (including pending orders).
- Available balance of the required cryptocurrency ≥ order margin.
Portfolio Margin Requirements
Similar to cross-coin but incorporates advanced risk calculations for diversified portfolios.
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Isolated Leverage Trading
Key Concepts
| Term | Definition |
|---|---|
| Position Assets | Collateral + position value (varies by long/short) |
| Maintenance Margin | Minimum collateral required to prevent liquidation |
| Liquidation Price | Calculated based on leverage, fees, and collateral |
Trading Principles
- Long Positions: Require the base currency as collateral (e.g., BTC for BTC/USDT).
- Short Positions: Require the quote currency (e.g., USDT for BTC/USDT).
Example:
10x leverage long on 1 BTC at $10,000 requires 0.1 BTC collateral and $10,000 borrowed.
Isolated Perpetual/Futures Contracts
Trading Modes
- Open/Close Position Mode (Single/Cross-Coin only)
- Buy/Sell Mode (Supports all margin types)
| Metric | Calculation |
|---|---|
| Unrealized PNL | Mark price vs. entry price × contract size |
| Margin Ratio | (Collateral + PNL) / (Position value × (maintenance rate + fees)) |
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Isolated Options Trading
Key Features
- Only allows selling (writing) options.
- Margin Requirements: Dynamic based on volatility and position size.
| Term | Formula |
|---|---|
| Seller Margin | (Strike price - mark price) × contract size |
Risk Management
Liquidation Triggers
- Leverage: Below 100% margin ratio.
- Futures: Tiered liquidation reduces positions incrementally.
- Options: Partial reductions at 115% warning threshold.
Example: BTC/USDT futures at 300% margin ratio triggers a warning; below 100% initiates liquidation.
FAQs
How is isolated margin different from cross-margin?
Isolated margin confines risk to individual positions, while cross-margin pools collateral across all trades.
What happens during liquidation?
Positions are closed at bankruptcy prices, with remaining collateral returned after settling debts.
Can I change margin modes after opening a position?
No, margin mode must be selected when opening and cannot be altered mid-trade.
How is maintenance margin calculated?
Varies by product but typically includes position size × mark price × maintenance rate.
Conclusion
OKX's isolated margin system provides flexible risk management for traders across spot, futures, and options markets. By understanding collateral requirements, liquidation mechanics, and product-specific rules, users can optimize their trading strategies while controlling exposure.
All trading involves risk. Past performance does not guarantee future results.