Futures Mode: Cross Margin Trading

In the fast-evolving world of cryptocurrency trading, efficiency, flexibility, and risk management are paramount. Futures mode with cross margin trading offers traders a powerful unified account system that supports multiple financial instruments — including spot, margin, futures, perpetual swaps, and options — all under a single, integrated margin framework.

This advanced trading model allows users to consolidate their crypto assets into a cross margin account, enabling shared collateral across all positions settled in the same cryptocurrency. Profits and losses are netted automatically, improving capital efficiency and simplifying portfolio management.

However, while cross margin enhances flexibility, it also introduces systemic risk exposure: if equity in a particular crypto drops too low, it may trigger partial or full liquidation across all positions denominated in that asset. For traders seeking isolation of risk per trade, isolated margin mode remains an alternative.

👉 Discover how cross margin maximizes your trading potential with seamless asset utilization.

Understanding Key Asset Metrics in Cross Margin

To trade effectively in futures mode with cross margin, you must understand the core components of your account’s financial state. These metrics determine your ability to open new positions, manage existing ones, and avoid liquidation.

Equity

Your equity reflects the real-time net worth of your holdings in a specific cryptocurrency. It includes:

• Base balance in the cross margin account
• Floating PnL (profit and loss) from cross and isolated margin positions
• Options market value

Formula:
Equity = Balance + Floating PnL (cross + isolated) + Options Value

This value fluctuates with market movements and is crucial for determining your overall risk exposure.

Free Margin

Free margin represents the amount of crypto available for opening new leveraged positions in futures, perpetual swaps, or short options.

Formula:
Free Margin = Max(0, Crypto Balance + Floating PnL – In Use)

Only when free margin exceeds the required margin can a new order be successfully placed.

Available Balance

While not displayed directly on-platform, available balance is essential for order validation. It refers to the portion of your assets usable for:

• Isolated margin positions
• Spot trades
• Long options positions

It excludes funds locked in open orders or active positions.

In Use

The in use metric accounts for all assets currently committed across:

• Open cross/isolated margin orders
• Active positions
• Accrued interest
• Trading bot allocations

These funds are temporarily unavailable for other uses until released by order execution or cancellation.

Floating PnL

Floating PnL (Unrealized Profit/Loss) aggregates gains or losses across all open positions settled in a given crypto — including both cross and isolated modes. This dynamic figure impacts your equity and free margin in real time.

Leverage (Per Crypto)

Leverage is calculated per cryptocurrency based on total position value relative to available equity:

Leverage = Total Position Value / (Cross Margin Balance + Floating PnL)

Higher leverage increases both potential returns and liquidation risks.

Maintenance Margin Ratio

This is the primary risk indicator for your account. A declining ratio signals increasing danger of liquidation.

Maintenance Margin Ratio = (Account Equity – Required Collateral for Open Orders) / (Total Maintenance Margin + Liquidation Fees)

When this ratio falls below 100%, liquidation procedures begin.

Total Equity (USD)

Your total equity converts all crypto holdings into fiat terms using OKX’s pricing hierarchy:

1. USD prices (if available)
2. USDT pairs × USDT/USD rate
3. USDC pairs × USDC/USD rate
4. BTC pairs × BTC/USD rate

This provides a unified view of your portfolio’s value.

Trading Rules in Cross Margin Mode

Cross margin mode enables capital efficiency by allowing shared collateral across multiple product lines settled in the same cryptocurrency.

Order Placement Requirements

• For futures, perpetual swaps, margin trades, and short options:
  Your free margin must cover the required margin.
• For spot trades and long options:
  Your available balance must meet the purchase requirement.

Let’s illustrate with an example:

Suppose a user holds:

• 700 BTC in cross margin balance
• $10 BTC floating PnL from margin positions
• $5 BTC floating PnL from futures
• $530 BTC currently "in use" due to open orders and positions

Then:

Free Margin = Max(0, 700 + 10 + 5 – 530) = 185 BTC

If a new order requires 200 BTC margin, it will be rejected, as free margin (185 BTC) < required (200 BTC).

👉 See how smart margin allocation can help you place larger trades with less capital.

Managing Margin Positions in Cross Mode

Core Position Fields

Understanding each field helps assess performance and risk:

Initial Margin Example

When opening a 1 BTC long position at 10x leverage, using BTC as margin:

• Required initial margin: 0.1 BTC
• Liability: 10,000 USDT borrowed
• The 0.1 BTC remains in your account (not transferred to the position)

This differs from isolated margin, where margin is ring-fenced within the position.

Closing Strategies in Cross Margin

How you close a position affects collateral recovery and potential reversals.

Same Crypto for Asset & Margin

Applies to:

• Long positions with quote-currency liability
• Short positions with base-currency liability

Closing Logic:

Only available assets can be used to close.

• If equity ≥ initial margin: Use IMR-based formula
• If equity < initial margin: Use MMR-based formula

Market Close All

Sells entire position at market price; pays off liabilities; transfers surplus to balance.

Limit Order Close

Allows partial closure; only closes fully when liability is cleared.

Reduce + Reverse

After closing, excess proceeds open a reverse position using available equity.

Different Crypto for Asset & Margin

Applies to:

• Short positions with base-crypto liability
• Long positions with quote-crypto liability

Closing Logic:

Entire position asset must be sold to close.

• If proceeds exceed liability: Surplus goes to balance
• If proceeds insufficient: Account equity covers shortfall

Reverse positions can be initiated post-closure using remaining equity.

Futures Trading in Cross Margin Mode

Both Hedge Mode (separate long/short) and One-Way Mode (net position) are supported.

Key Calculations

These formulas underpin real-time risk assessment and liquidation thresholds.

Options in Cross Margin Mode

You can hold both long and short options positions within the same cross margin framework.

Key Notes:

• Long options: Initial and maintenance margins = 0
• Short options: Require full collateral (see OKX documentation)
• Options Value: Depends on pricing unit (per contract or per coin)

Floating PnL is calculated as:

(Mark Price – Avg Open Price) × Total Contracts × Multiplier

Risk Management: Pre-Liquidation & Order Cancellation

OKX employs a two-tier defense system to protect accounts from sudden collapse.

1. Risk Control Order Cancellation

Triggered when account risk rises but hasn’t reached liquidation level.

Orders canceled if:

• (Available Equity – Used Balance) < Required Maintenance Margin + Initial Margin for Opening Orders + Fees
• Or Available Balance < 0

Affects:

• All opening orders (cross/isolated)
• Selling orders for the relevant crypto

2. Pre-Liquidation Verification

Activated when maintenance margin ratio ≤ 100%

System cancels high-risk orders first:

If ratio remains ≤100% after cancellation, partial liquidation begins.

Partial Liquidation Process (3 Phases)

1. Reverse Positions First:
   Close opposing long/short legs on same contract (e.g., +100/-100 → net zero).
2. Delta-Hedged Positions:
   Target offsetting delta exposures. Prioritize those with higher maintenance margin.
3. Unhedged Positions:
   Liquidate remaining unbalanced positions starting with highest risk contributors. Each step reduces position tier by one level until safety restored.

⚠️ Long options are never partially liquidated.

Frequently Asked Questions (FAQ)

Q: What happens if my maintenance margin ratio drops below 100%?

A: The system first cancels high-risk open orders. If the ratio remains at or below 100%, partial liquidation begins — starting with hedged or reverse positions — until sufficient margin is restored.

Q: Can I use different cryptos as margin for the same pair?

A: Yes. In cross margin mode, both base and quote currencies can serve as margin. For example, you can use either BTC or USDT as collateral when trading BTC/USDT.

Q: How is floating PnL calculated for USDT-margined futures?

A: For long positions: (Mark Price – Entry Price) × Quantity × Multiplier. For shorts: (Entry Price – Mark Price) × Quantity × Multiplier.

Q: Why can’t I see my estimated liquidation price?

A: Est. liquidation price isn’t available when multiple underlyings are involved in cross margin mode or when non-USDT pairs are mixed in USDT cross accounts.

Q: Does closing a position always require selling all assets?

A: Only when asset and margin cryptos differ. In same-crypto scenarios, you may partially close without selling everything — provided liabilities are covered.

Q: Are long options ever liquidated?

A: No. Long options have zero maintenance margin and are never subject to partial liquidation.

Digital asset trading involves significant risk, including volatility and leverage amplification. You may lose your entire investment. Past performance does not guarantee future results. Always evaluate whether leveraged trading suits your financial situation. You are solely responsible for your decisions; OKX assumes no liability. Not all products are available globally. Refer to OKX Terms of Service for full disclosures.

👉 Start optimizing your cross margin strategy today — unlock efficient multi-product trading now.