Navigating the world of digital asset derivatives trading requires more than just market insight—it demands a deep understanding of how your capital is managed. At OKX, two advanced margin modes empower traders with flexibility and efficiency: Multi-currency Margin Mode and Portfolio Margin Mode. While both support a wide range of instruments—including spot, futures, and options—each operates under distinct risk and capital utilization frameworks.
This guide breaks down the core differences, use cases, and strategic advantages of each mode, helping you make data-driven decisions that align with your trading style.
Understanding Key Concepts
Before comparing the two modes, it’s essential to define the foundational terms that govern margin mechanics on OKX.
Core Metrics Common to Both Modes
- Equity: The total value of a specific cryptocurrency in your account, including balances, unrealized PnL (profit and loss), and options market value.
API field:eq - Free Margin: The portion of equity available for opening new positions or serving as collateral.
Formula: Max(0, Cross-margin balance + Floating PnL – In-use margin)
API field:availEq - Available Balance: The amount usable for isolated margin, spot trading, or long options positions.
API field:availBal - Floating PnL: The unrealized gain or loss across all open positions settled in a given crypto.
API field:upl - Account Equity: The total fiat (USD) value of all cryptocurrencies in your account.
API field:totalEq - Margin Level: A health indicator calculated as Adjusted Equity divided by (Maintenance Margin + Liquidation Fees).
API field:mgnRatio - Maintenance Margin Requirement (MMR): The minimum margin needed to keep positions open. Falling below this triggers liquidation warnings.
👉 Discover how advanced margin models can boost your trading efficiency.
What Sets Portfolio Margin Mode Apart?
Portfolio Margin Mode introduces a risk-based, scenario-driven framework that evaluates your entire portfolio holistically—not instrument by instrument.
Key Features Unique to Portfolio Margin Mode
- Risk Units: Derivatives are grouped by underlying asset (e.g., BTC, ETH) into risk units. All BTC-related futures, options, and spot positions fall under one BTC risk unit.
Scenario-Based Margin Calculation: MMR is derived from stress tests across nine risk dimensions:
- Spot shocks
- Theta decay
- Extreme price moves
- Basis risk
- Vega risk
- Interest rate fluctuations
- Stablecoin depegging
- And more
This scientific approach rewards hedged and diversified portfolios with lower margin requirements.
- Derivatives and Borrowing Margin: Portfolio MMR combines derivatives margin (from risk units) and borrowing margin. Initial Margin Requirement (IMR) is set at 1.3 × MMR.
- Spot In Use: Spot holdings can be allocated as hedges within a risk unit (e.g., using BTC spot to offset BTC futures delta), reducing overall margin burden.
- Risk Factor (MR): Seven risk factors (MR1–MR9) are applied during stress testing, with an additional minimum charge (MR7) covering slippage, fees, and liquidation costs.
Multi-currency vs. Portfolio Margin: A Side-by-Side Comparison
| Feature | Multi-currency Margin Mode | Portfolio Margin Mode |
|---|---|---|
| Tradable Instruments | Spot, margin, futures, options | Same |
| Minimum Equity Requirement | > $10,000 | > $10,000 |
| Collateral Usage | All assets accepted; USD value applied with discount rates | Same; includes unrealized PnL as equity |
| Option Position Treatment | Only short options count toward cross-margin margin | Both long and short options contribute to margin |
| Position Margining | Per-instrument tier-based calculation | Holistic risk-unit assessment with scenario modeling |
| Hedging Capability | No spot-to-derivatives delta offsetting | Spot can be used for hedging within risk units |
👉 See how portfolio-level risk modeling can reduce your margin needs.
Real-World Scenarios: Which Mode Performs Better?
Let’s examine three common trading profiles using simulated data from February 6, 2025.
1. Large Delta-Neutral Portfolio (Ideal for Portfolio Margin)
- Assets: 10 BTC
Positions:
- Short 35,000 BTCUSD futures
- Long 3,500 BTCUSDT perps
- Short 2,000 BTC call options
| Metric | Multi-currency Mode | Portfolio Margin Mode |
|---|---|---|
| IMR | $961,956 | $168,947 |
| MMR | $192,371 | $129,959 |
✅ Conclusion: Portfolio Margin reduces IMR by over 82% and MMR by 33%. Approximately 8 BTC are marked as “spot in use” for hedging—unavailable in multi-currency mode.
2. Small Delta-Neutral Positions
- Assets: 1 BTC
Positions:
- Mixed short/long futures and perps
| Metric | Multi-currency Mode | Portfolio Margin Mode |
|---|---|---|
| IMR | $106,374 | $8,132 |
| MMR | $5,503 | $6,035 |
⚠️ Conclusion: Slightly higher MMR in portfolio mode, but IMR drops by 92%—ideal for traders opening new hedged positions with limited capital.
3. Delta-One (Directional) Trader
- Assets: None (fully leveraged)
- Positions: Net short BTC across multiple contracts
| Metric | Multi-currency Mode | Portfolio Margin Mode |
|---|---|---|
| IMR | $154,651 | $284,621 |
| MMR | $7,775 | $188,823 |
❌ Conclusion: Portfolio Margin significantly increases margin requirements for directional trades. Multi-currency mode is more efficient here due to lack of offsetting positions.
Frequently Asked Questions
Q: Can I switch between margin modes anytime?
A: Yes, but only if your net equity exceeds $10,000. Switching may affect open positions’ margin calculations—review implications first.
Q: Does Portfolio Margin support spot trading?
A: Yes. Spot assets can act as collateral and be used for delta hedging within risk units.
Q: Why is IMR lower in Portfolio Margin for hedged positions?
A: Because correlated risks offset each other under stress scenarios—reducing the calculated maximum potential loss.
Q: Can I use unrealized PnL as margin?
A: Yes, in both modes. Unrealized gains contribute to equity and can serve as collateral (PnL offset).
Q: Is Portfolio Margin suitable for beginners?
A: It’s designed for experienced traders managing complex, hedged portfolios. Beginners may benefit more from multi-currency mode’s simplicity.
Q: Are there fees to enable Portfolio Margin?
A: No. The mode is free to use—activation depends only on meeting the $10k equity threshold.
Test Before You Trade: Use Demo & Position Builder Tools
OKX offers powerful tools to simulate performance before committing real capital.
Demo Trading
Available under the Trade tab, demo mode lets you:
- Switch between Multi-currency and Portfolio Margin modes
- Simulate trades without financial risk
- Monitor real-time changes in equity, MMR, and margin level
Position Builder
This interactive tool helps you:
- Compare IMR and MMR across both modes
- Simulate new positions alongside existing ones
- Evaluate the impact of hedging with spot assets
- Optimize capital allocation before execution
👉 Experiment with your strategy in a risk-free environment today.
Final Thoughts
Choosing between Multi-currency Margin Mode and Portfolio Margin Mode isn’t about which is “better”—it’s about which aligns with your strategy.
- Use Multi-currency Mode if: You’re a directional trader, prefer simplicity, or manage smaller, non-hedged portfolios.
- Choose Portfolio Margin Mode if: You run delta-neutral strategies, trade across multiple derivatives, or want maximum capital efficiency through risk netting.
By leveraging OKX’s sophisticated risk modeling and simulation tools, you gain clarity, control, and confidence—no matter your approach.
Whether you're optimizing for leverage, diversification, or hedging precision, understanding these modes is the first step toward smarter trading.