As a premier digital asset derivatives exchange, OKX offers advanced margin infrastructure to optimize capital efficiency. This guide compares multi-currency margin mode and portfolio margin mode, helping traders choose the best fit for their strategies.
Key Concepts Explained
Core Terminology for Both Modes
| Term | Definition | API Parameter (Get Balance) |
|---|---|---|
| Equity | Total assets of a crypto in cross-margin accounts and isolated positions. | eq (details array) |
| Free Margin | Margin available for trading futures, options (short), and perpetuals. | availEq (details array) |
| Floating PnL | Unrealized PnL across all positions settled in a specific crypto. | upl (details array) |
| Account Equity | Total fiat value of all cryptocurrencies in the account. | totalEq |
Portfolio Margin-Specific Terms
- Risk Unit: Derivatives grouped by underlying crypto (e.g., BTC-USD, ETH-USDT).
- Maintenance Margin (MMR): Calculated via stress tests across 9 risk scenarios.
- Initial Margin (IMR): 1.3 × MMR.
Example Risk Unit (ETH):
- ETHUSDT perpetual/expiry futures
- ETHUSD options
- ETH spot (USDT/USDC pairs)
Side-by-Side Comparison
| Feature | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| Tradable Instruments | All (spot, futures, options) | All (spot, futures, options) |
| Collateral Assets | All assets with tier-based discount rates. | Same, plus PnL offset for derivatives. |
| Option Valuation | Only short options count as margin. | Long/short options both contribute. |
| Margin Calculation | Per instrument, no risk offsets. | Holistic per risk unit with delta hedging. |
Practical Scenarios
1. Large Delta-Neutral Portfolio (6 Feb 2025 Simulation)
| Metric | Multi-Currency Mode | Portfolio Margin Mode |
|---|---|---|
| Initial Margin (IMR) | $961,956 | $168,947 |
| Maintenance Margin (MMR) | $192,371 | $129,959 |
👉 Discover how portfolio margin reduces IMR by 82%
Conclusion: Ideal for hedged positions; spot assets lower MMR.
2. Small Delta-Neutral Positions
- Portfolio margin offers slightly higher MMR but significantly lower IMR.
3. Single-Directional (Delta One) Trading
- Multi-currency mode is more capital-efficient for unhedged strategies.
Demo Trading & Tools
Simulate Positions:
- Navigate to Trade > Settings > Account Mode.
- Compare margins in real-time.
Position Builder:
- Test IMR/MMR for new/existing positions.
- Switch modes via the top-right corner.
👉 Try OKX’s Position Builder today
FAQs
Q: Which mode is better for beginners?
A: Multi-currency mode simplifies margin calculations for straightforward strategies.
Q: Can I use spot holdings to reduce MMR in portfolio mode?
A: Yes! Spot assets offset delta risk, lowering margin requirements.
Q: How do I qualify for portfolio margin?
A: Requires >$10,000 equity and approval for advanced features.
Final Notes
- Portfolio margin excels for complex, hedged portfolios.
- Multi-currency suits directional traders and smaller positions.
- Always simulate strategies in demo mode before live trading.