What is Margin in Virtual Contracts?
In virtual contract markets, traders only need to deposit a small percentage of funds (relative to the contract price) as financial collateral to participate in contract trading. This collateral is known as virtual contract margin.
OKX's Two Margin Systems
Cross Margin
- Calculation: Position Margin = Face Value × Number of Contracts / Latest Mark Price / Leverage
- Feature: Margin adjusts dynamically with price fluctuations.
Isolated Margin
- Calculation: Position Margin = Face Value × Number of Contracts / Entry Price / Leverage
- Feature: Margin remains fixed after position opening.
Key Trading Concepts
Spot Trading (Coin-to-Coin)
Spot trading involves exchanging one cryptocurrency directly for another. OKX supports multiple markets including:
- USDT pairs
- USD(S) pairs
- Crypto pairs (BTC, OKB, ETH)
Mark Price vs. Index Price vs. Order Price
| Term | Definition |
|---|---|
| Mark Price | Used to calculate unrealized P&L, combining index price and basis spread. |
| Index Price | Reference price derived from major spot markets. |
| Order Price | Actual price at which orders are executed. |
Specialized Trading Instruments
Options Contracts
OKX offers:
- BTC/ETH Options (Call/Put)
Two trading modes:
- Simplified (for beginners)
- Professional (advanced tools)
Grayscale Concept Tokens
Tokens related to Grayscale Investment's trust funds, including 11 assets grouped for easy trading.
Blockchain Innovations
MXC Foundation
Focuses on:
- LPWAN + Blockchain integration
Decentralized protocol solutions:
- Conflict resolution via super nodes
- Smart bidding for resource allocation
- Cross-chain data markets (via Polkadot ecosystem)
Dogecoin (DOGE)
- Origin: Joke-based (2013) → Gained serious adoption
Features:
- Tipping-friendly design
- Modified Proof-of-Work system
FAQs
Q1: Which margin mode is better for beginners?
A: Cross margin simplifies management, while isolated margin limits risk exposure.
Q2: How often does mark price update?
A: Continuously, using real-time index prices and moving averages.
Q3: Can I trade options without leverage?
A: Yes, options inherently don't require margin unless combined with other strategies.
Q4: What makes DOGE different from BTC?
A: Faster block time (1 minute), inflationary supply, and community-driven use cases.
Q5: How are Grayscale tokens selected?
A: Based on assets held by Grayscale Investment's trust funds.