OKX recently added a new feature in its Portfolio Margin, Spot-derivatives risk offset. The announcement followed the release of the cross-margin trading feature a week ago.
The feature went live at 7:00 am UTC on 24th August, replacing the margin requirement. Previously, the platform calculated the requirement based on futures, options, and perpetual swaps positions within risk units.
However, OKX will now support spot positions in the risk unit to offset derivatives positions. Anyone using the spot to hedge derivatives can substantially lower the margin requirement.
In addition, they can toggle Spot-derivatives in Portfolio Margin. Under this mode, users can access spot positions into either USDT-margined or crypto-margined risk units. The platform released an official post to inform users about the feature and an in-depth user guide.
OKX has been elevating its functionalities with updates like cross-margin trading. The Portfolio Margin mode lets users trade margin, futures, options, spot, and perpetual swaps in one account.
At the same time, it uses a risk-based model to determine margin requirements. The latest model considers positions in margin, futures, options, spot, and perpetual swaps combined. This way, it reduced the requirements of users’ portfolios, allowing for margin coverage while securing optimal capital usage.
Like the multi-currency margin mode, users can convert equity in different currencies into US dollars. It can be used as a margin for holding positions and order placement. Users must complete two crucial benchmarks to become qualified for Portfolio Margin.
These requirements are:
- Users must maintain at least 100,000 USD in net equity
- Users must possess experience in trading options with an understanding of portfolio margin
Given the rate OKX is introducing features, its market stature and reach are expanding gradually.
