Understanding OKX Cross-Currency Margin Mode: Unified Account Trading Explained

Introduction to Cross-Currency Margin Mode

In this innovative trading framework, users can simultaneously engage in five distinct services—spot trading, margin trading, futures, perpetual swaps, and options—by simply transferring assets into a unified account. The system automatically converts all currencies into their USD equivalent value for margin calculations, order validation, and position maintenance.

Key Features

• Multi-Asset Collateralization: Diverse cryptocurrency holdings collectively serve as margin across all trading products
• Flexible Borrowing Options: Users may enable auto-borrow mode when their total USD-equivalent margin meets requirements
• Risk Management: Portfolio risks are evaluated through USD-value metrics across all positions

How Cross-Currency Margin Works

The system employs a two-tiered risk assessment protocol:

1. Risk Control Cancellation Check: Automatically cancels select orders when account risk exceeds safety thresholds
2. Pre-Liquidation Check: Triggers partial position reductions before forced liquidation scenarios

Trading Modes Available

1. Open/Close Position Mode
2. Buy/Sell Mode

Margin Calculation Mechanics

Effective margin is calculated using:

Effective Margin = (Positive Equity × Spot Price × Conversion Rate) + (Negative Equity × Spot Price) - Order Losses - Estimated Fees

Automatic Borrow Mode Example

When selling DASH with insufficient balance:

1. System calculates potential borrowing requirements
2. Deducts corresponding initial margin from available collateral
3. Allows order execution if total USD-equivalent margin remains sufficient

Risk Management Protocols

Three-stage liquidation process:

1. Offsetting Positions: Closes opposing positions in the same contract
2. Delta-Neutral Reduction: Adjusts positions to maintain portfolio delta while reducing risk
3. Non-Hedged Position Liquidation: Prioritizes positions offering maximum risk reduction

FAQ Section

What happens when a currency's equity turns negative?

The system automatically generates debt denominated in that currency and begins interest accrual. Within interest-free limits, no charges apply.

How does the platform handle forced liquidation?

When margin ratio ≤100%, the system:

1. Cancels all pending orders
2. Initiates progressive position reductions
3. Uses risk reserve funds to cover any negative balances

What's the difference between available balance and available margin?

Available balance excludes unrealized profits from open positions, while available margin includes all collateral value.

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Conclusion

OKX's Cross-Currency Margin Mode revolutionizes crypto trading by:

• Eliminating manual currency conversions
• Maximizing capital efficiency across products
• Implementing robust risk controls
• Offering flexible borrowing options

This integrated approach provides traders with unprecedented flexibility while maintaining rigorous risk management standards.