Cross-Margin Trading Rules for Contract Accounts

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Introduction

In this trading mode, you can seamlessly trade five different products—spot, margin, futures, perpetual swaps, and options—by simply transferring assets into a cross-margin account. The cross-margin feature allows shared margin usage across derivatives with the same settlement currency, enabling profit/loss offsetting during risk calculations. However, this also means all positions under the same settlement currency are evaluated collectively for risk. Insufficient equity in the currency may trigger full liquidation, potentially resulting in total loss of that currency’s equity. Alternatively, users may opt for isolated margin mode to compartmentalize risks.


Asset Fields Explained

TermDefinitionAPI Field (details[])
Currency EquityTotal equity of a currency across cross-margin and isolated positions. Formula: Account Balance + Cross-Margin PnL + Isolated Margin Balance + Isolated PnL + Options Market Value.eq
Available MarginFunds available for opening cross-margin positions (leveraged trades, perpetual/futures contracts, options selling). Formula: Max(0, Cross-Margin Balance + PnL - Frozen Balance).availEq
Available BalanceFunds available for isolated trades, options buying, or spot sell orders (not displayed in asset fields).availBal
Frozen BalanceAssets locked for open orders/positions (cross-margin and isolated).frozenBal
Unrealized PnLSum of profits/losses for all leveraged/contract positions settled in the currency (cross-margin + isolated).upl
Currency LeverageOverall leverage at currency level. Formula: Position Coin Count / (Cross-Margin Balance + PnL).notionalLever
Maintenance Margin RateRisk metric per currency. Formula: (Cross-Margin Balance + PnL - Sell Orders - Options Buy Costs - Isolated Margin Needs - Fees) / (Maintenance Margin + Liquidation Fees).mgnRatio
Account EquityTotal net value of all currencies converted to fiat. Uses OKX’s USD index or USDT-based pricing.eqUsd

Trading Rules Overview

Users may trade in cross-margin (shared equity) or isolated margin (compartmentalized risk) modes. Cross-margin enables offsetting profits/losses across products sharing the same settlement currency.

Cross-Margin Order Validation

Example Scenario:
A user holds BTC cross-margin positions:

Order Validation:


Cross-Margin Leverage

Position Fields

TermDefinitionAPI Field
Position AssetsNet positive assets (excluding margin).pos
Available to CloseAssets available for closing, adjusted by account equity vs. initial/maintenance margin.availPos
Liquidation PriceEstimated price triggering liquidation (not calculable with multi-currency positions).liqPx
Initial MarginCalculated based on leverage, trade direction, and collateral type (coin vs. quote currency).imr

Closing Mechanisms

  1. Same-Currency Collateral:

    • Full Close: Sells position assets to repay debt; excess returns to balance.
    • Partial Close: Repays debt incrementally; residual assets returned.
  2. Different-Currency Collateral:

    • Sells all position assets first; any remaining debt is auto-repaid from account balance.

Example:


Cross-Margin Futures/Perpetuals

Supports one-way (single-direction) and hedging (multi-direction) modes.

Position Fields

TermDefinitionAPI Field
Unrealized PnLFor USDⓈ-M contracts: Face Value × Contracts × (Mark Price - Entry Price).upl
Maintenance MarginAdjusted by position tier and mark price.mmr

Cross-Margin Options

Position Fields

TermDefinitionAPI Field
Market ValuePosition Size × Mark Price × Contract Multiplier (for contract-based pricing).optVal
Seller MarginInitial/maintenance margins apply only to option sellers.imr/mmr

Risk Management

Two-tiered checks prevent abrupt liquidations:

  1. Risk Control Cancellation:

    • Cancels orders if Available Equity < Maintenance Margin + Open Order Costs.
  2. Pre-Liquidation:

    • At 300% maintenance rate: Warning issued.
    • At ≤100%: All open orders canceled; forced liquidation in stages:
      a) Offset hedged positions.
      b) Delta-neutral reductions.
      c) Non-hedged positions (highest risk impact first).

Liquidation Example:
A BTC-USD futures + options portfolio triggers liquidation. System offsets delta-neutral pairs first, then prioritizes futures over options to minimize risk.


FAQs

1. What happens if my cross-margin equity turns negative?

The platform’s insurance fund covers negative balances, generating a clawback report.

2. Can I use both cross-margin and isolated margin simultaneously?

Yes, but isolated positions remain risk-segregated.

3. How is maintenance margin calculated for multi-product portfolios?

It aggregates maintenance needs across all positions under the same settlement currency.

4. Why might my liquidation price be unavailable?

Multi-currency portfolios or non-USDT pairs with mixed derivatives disable this estimate.

5. Are option buyers subject to forced liquidation?

No, only sellers face liquidation risks.

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This document is for informational purposes only and does not constitute financial advice. Trading digital assets involves significant risk.
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