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 buying or selling contracts. These funds are referred to as virtual contract margin.
OKX's Two Margin Systems
OKX offers two margin systems:
Cross Margin
- Calculation: Initial Margin = (Face Value × Number of Contracts) / Latest Mark Price / Leverage.
- The required margin fluctuates with price changes.
Isolated Margin
- Calculation: Initial Margin = (Face Value × Number of Contracts) / Entry Price / Leverage.
- The margin remains fixed after opening a position.
👉 Learn how margin impacts your trading strategy
Key Trading Concepts
Spot Trading (Coin-to-Coin)
Spot trading involves exchanging one digital asset for another directly. OKX supports multiple markets, including:
- USDT, USD(S), and Crypto pairs (BTC, OKB, ETH).
MXC Protocol
MXC Foundation focuses on:
- Low-Power Wide-Area Network (LPWAN) and blockchain cross-chain data technology.
- Solutions include decentralized conflict resolution and IoT data markets via Polkadot’s ecosystem.
Dogecoin (DOGE)
A peer-to-peer decentralized cryptocurrency originating from an internet meme. Features:
- Community-driven adoption.
- Tipping utility for social media users.
Pricing Mechanisms
- Mark Price
Used to calculate unrealized P&L to minimize unnecessary liquidations.
Formula: Spot Index Price + Basis Moving Average. - Index Price
The reference price derived from major spot markets. - Order Price
The price specified in a trade request.
Options Contracts
OKX offers BTC/ETH options:
- Simplified/Professional Trading: Buyers can exercise rights if favorable at expiry.
- Types: Call and Put options.
Grayscale Concept Tokens
Digital assets covered by Grayscale Investment’s trust funds. OKX lists 11 such tokens for trading.
Frequently Asked Questions (FAQ)
Q1: How does leverage affect margin requirements?
Higher leverage reduces the initial margin needed but increases liquidation risks.
Q2: What happens if mark price differs from market price?
Mark price smooths volatility, reducing unfair liquidations during short-term spikes.
Q3: Can I switch between cross and isolated margin?
Yes, but adjustments may require closing existing positions or meeting additional collateral rules.
👉 Explore advanced margin strategies
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Digital asset trading involves high risk. Consult a professional before making decisions. © 2025 OKX. Licensed for non-commercial use with attribution.