Dear OKX Users,
To enhance the trading experience for spot hedging under Portfolio Margin Mode, OKX will optimize the spot hedging functionality on June 5, 2024, at 12:00 PM (UTC+8). Key updates include:
Key Feature Upgrades
1. Expanded Hedging Structure Types
- Integrates spot orders into derivatives hedging systems.
- Enables direct hedging between spot and derivatives orders (reducing margin requirements in liquid markets).
2. Flexible Spot Hedge Quantity Adjustment
- Users can customize the volume of spot assets included in derivatives hedging structures.
3. Precision in Risk Calculation
- Enhanced measurement of spot assets within derivatives margin systems.
- Adjusted liquidation rules for spot assets.
Margin Calculation Updates
- Adds basis risk (MR4) evaluation between spot/spot orders and derivatives positions/orders.
Note: May increase maintenance margin (e.g., spot-perpetual/futures/options hedge combinations).
| Position/Order Structure | Pre-Update | Post-Update |
|--------------------------|------------|-------------|
| Holdings: 10 BTC spot; -1,000 BTCUSDT perpetual contracts. Orders: BTC/USDT spot buy (5 BTC at mark price). | MMR: 3,020.87 USDT | MMR: 8,053.32 USDT (due to MR4 basis risk) |
4. Diversified Hedging Modes
- Extends spot hedging to all margin modes (USDT/USDC/coin-margined).
- Supports hedging between spot and corresponding USDC-based risk units.
Spot Hedging Mode Examples
| Mode | ETH-USDT Risk Unit | ETH-USDC Risk Unit | ETH-USD Risk Unit |
|-----------------|---------------------------|---------------------------|---------------------------|
| Derivatives | ETHUSDT perpetual/futures | ETHUSDC perpetual/futures | ETHUSD perpetual/futures/options |
| USDT-Mode | ETHUSDT perpetual/futures + ETH spot/orders | ETHUSDC perpetual/futures | ETHUSD derivatives |
| USDC-Mode | ETHUSDT perpetual/futures | ETHUSDC perpetual/futures + ETH spot/orders | ETHUSD derivatives |
| Coin-Mode | ETHUSDT perpetual/futures | ETHUSDC perpetual/futures | ETHUSD derivatives + ETH spot/orders |
*Includes positions/orders for derivatives (futures/perpetuals/options).
👉 Learn more about Portfolio Margin optimizations
FAQ
Q1: How does spot hedging reduce margin requirements?
A1: By offsetting opposing spot and derivatives exposures, basis risk calculations lower net margin needs.
Q2: Can I adjust hedge ratios post-update?
A2: Yes, customize spot quantities in hedging structures via the updated interface.
Q3: Are there API changes for developers?
A3: Refer to the API documentation for new endpoint details.
For detailed rules on maintenance margins and API adjustments, visit OKX’s official help center.
OKX Team
May 31, 2024