In the fast-evolving world of cryptocurrency trading, efficiency and risk management are paramount. Futures mode with cross margin trading offers a unified, capital-efficient approach that allows traders to manage multiple positions across spot, margin, futures, perpetual swaps, and options—all under a single, shared margin pool denominated in the same cryptocurrency.
This comprehensive guide explores how cross margin works within futures mode, breaks down key asset and position metrics, explains trading rules and risk controls, and helps you understand the powerful—but complex—mechanics behind this advanced trading feature.
Understanding Cross Margin in Futures Mode
Cross margin mode enables traders to use their entire available balance of a specific crypto (e.g., BTC or USDT) as collateral across all leveraged positions settled in that asset. This includes:
- Spot margin trades
- Expiry and perpetual futures
- Options (both long and short)
All profits and losses from these instruments are aggregated and offset against each other within the same margin pool. This improves capital efficiency by eliminating the need to allocate separate margin for every trade.
👉 Discover how cross margin maximizes your trading power with seamless multi-product integration.
However, because all positions share the same equity, a sharp move against any one position can impact the entire portfolio. If the total equity falls below required maintenance levels, partial or full liquidation may occur.
For traders seeking isolation between trades, isolated margin mode is recommended. But for those who prefer dynamic risk pooling and optimal fund utilization, cross margin is an ideal choice.
Core Asset Metrics in Cross Margin
To navigate cross margin effectively, it’s essential to understand the key financial indicators that define your account health.
Equity
Your total net worth in a given cryptocurrency across all trading products:
Equity = Account Balance + Floating PnL (Cross & Isolated) + Options Market ValueThis reflects real-time gains or losses from open positions.
Free Margin
The amount of crypto available for opening new leveraged trades:
Free Margin = Max(0, Crypto Balance + Floating PnL – In Use)Only when free margin exceeds the required margin can a new order be placed.
Available Balance
Used for spot trading, isolated positions, and long options:
Note: This is used internally for calculations and not displayed on-platform.
In Use
Assets currently locked in:
- Open orders (cross and isolated)
- Active positions
- Accrued interest
- Trading bot allocations
Floating PnL
Unrealized profit or loss across all positions settled in a particular crypto:
Floating PnL = Sum of Unrealized Gains/Losses from Margin, Futures, and OptionsLeverage (Per Crypto)
Dynamic leverage based on total exposure relative to equity:
Leverage = Total Position Value / (Balance + Floating PnL in Cross Positions)Higher leverage increases both potential returns and liquidation risk.
Maintenance Margin Ratio (MMR)
A critical risk indicator:
MMR = (Equity – Used Assets) / (Maintenance Margin + Liquidation Fees)When MMR drops below 100%, liquidation triggers. A warning is issued when MMR falls below 300%.
Total Equity (USD)
Aggregate fiat value of all crypto holdings:
Total Equity = Σ(Crypto Equity × USD Price)Prices are derived from OKX’s reference rates using USDT, USDC, or BTC pairs.
Trading Rules in Cross Margin Mode
Traders can operate in either cross or isolated margin mode simultaneously. However, cross margin introduces shared risk dynamics.
Order Requirements
| Trade Type | Requirement |
|---|---|
| Futures, Perpetuals, Options (Short), Margin | Free margin ≥ required margin |
| Spot, Options (Long) | Available balance ≥ required amount |
Let’s illustrate with an example:
Suppose you hold:
- 700 BTC in cross margin account
- $15 BTC floating PnL ($10 from margin + $5 from futures)
- $530 BTC "in use" across open orders and positions
Then:
Free Margin = Max(0, 700 + 15 – 530) = 185 BTCIf you attempt to open a long futures position requiring 200 BTC margin, the order fails, since 185 < 200.
👉 See how smart margin allocation prevents failed trades and boosts execution success.
Managing Margin Positions in Cross Mode
Key Position Fields
| Term | Explanation |
|---|---|
| Assets | Positive position size (excluding margin) |
| Available Asset | Amount eligible to close the position |
| Liability | Borrowed amount + accrued interest |
| Avg. Open Price | Weighted average entry price; unaffected by partial closes |
| Est. Liquidation Price | Reference price at which liquidation occurs (not always calculable) |
| Floating PnL | Unrealized gain/loss in base or quote currency |
| Initial/Maintenance Margin | Calculated based on leverage tier and contract type |
Initial Margin Example
Opening a 1 BTC long on BTC/USDT at 10x leverage using BTC as margin:
- Required margin: 0.1 BTC
- Borrow: 10,000 USDT
- Margin remains in your account balance (unlike isolated mode)
After execution:
- Position asset: 1 BTC
- Liability: 10,000 USDT
- Equity begins fluctuating with market price
Closing Positions: Rules & Scenarios
Closing behavior depends on whether position asset and margin are the same crypto.
Case 1: Same Crypto (e.g., BTC used as both asset and margin)
Used for:
- Longs with quote liability (e.g., BTC/USDT long using BTC as margin)
- Shorts with base liability
Closing rules:
- Only available assets can be used
- “Reduce only” is default
- Partial closure allowed
Available asset formula:
- If equity ≥ initial margin:
(Liability + Interest) × (1 + IMR%) / Mark Price - If equity < initial margin: Use MMR instead of IMR
Case 2: Different Crypto (e.g., USDT margin for BTC long)
Used for:
- Longs with quote liability and quote margin
- Shorts with base liability and base margin
Rules:
- Must sell entire position asset to close
- Unpaid liabilities deducted from account equity
- Reverse positions possible via “reduce + reverse” orders
Futures & Options in Cross Margin
Both hedge and one-way modes are supported for futures.
Futures Position Metrics
| Metric | Formula | ||
|---|---|---|---|
| Floating PnL (Crypto-margined) | Long: `FV × | Contracts | × Mult × (1/AvgPx – 1/MarkPx)` |
| Initial Margin | `FV × | Contracts | × Mult / (MarkPx × Leverage)` |
| Maintenance Margin | Based on tiered rate × IM |
Options Trading
Traders can take long or short options positions.
Key points:
- Long options: Initial and maintenance margins = 0
- Short options: Require significant collateral (see OKX Help Center)
- Delta hedging plays a role in liquidation prioritization
Risk Management: Dual-Layer Protection
Futures mode employs two layers of automated risk control:
1. Order Cancellation by Risk Control System
Preemptively cancels high-risk orders before liquidation thresholds are breached.
Triggered when:
(Available Equity – In Use) < Required Maintenance + Initial Margin for Open Orders→ Cancels all opening ordersAvailable Balance < 0→ Cancels isolated orders, sell orders, and options buy orders
2. Pre-Liquidation Verification
Activated when Maintenance Margin Ratio ≤ 100%.
System first cancels risky open orders:
| Product | Action Taken |
|---|---|
| Futures (Hedge) | Cancel all cross opening orders; cancel isolated opening limit orders |
| Futures (One-way) | Same as above; algo orders preserved |
| Margin | Cancel cross opening orders; cancel same-direction isolated limit orders |
| Options | Cancel all cross opening orders and isolated opening orders |
If MMR remains ≤ 100% after cancellations, partial liquidation begins.
Partial Liquidation Process (3 Phases)
Liquidation proceeds in stages to minimize market impact:
- Reverse Positions: Close opposing long/short positions on the same contract (Hedge mode only).
- Delta-Hedged Pairs: Reduce offsetting delta exposures, prioritizing higher-maintenance-margin positions.
- Unhedged Positions: Target unhedged trades with best risk-reduction impact; reduce tier level until safe.
Example: A BTC account with long futures (+Δ) and short call options (–Δ) may see both partially liquidated to restore balance.
Frequently Asked Questions (FAQ)
What is cross margin trading?
Cross margin uses your entire crypto balance as shared collateral across all leveraged positions settled in that asset. Profits and losses offset each other, improving capital efficiency but increasing interconnected risk.
How is liquidation triggered?
When the maintenance margin ratio drops to or below 100%, the system initiates pre-liquidation order cancellation. If risk persists, partial liquidation begins based on position type and hedging status.
Can I mix cross and isolated margin?
Yes. You can run both modes simultaneously. However, only cross margin positions share equity; isolated positions remain independent.
Why can't I place an order even with funds?
Your free margin must cover the required collateral. Even if your balance seems sufficient, pending orders or existing positions may lock up funds ("in use"), reducing available liquidity.
Does closing a position always return full profit?
Not necessarily. Fees, accrued interest, and slippage affect net proceeds. Also, in cross mode, realized PnL contributes directly to your overall equity pool.
Are options included in cross margin calculations?
Yes. Option values, premiums, and short position margins are factored into equity, free margin, and MMR calculations—making them part of your overall risk profile.
Final Thoughts
Cross margin trading in futures mode offers unparalleled flexibility for experienced traders managing diversified portfolios. By pooling equity across spot, futures, options, and margin products, users maximize capital efficiency and streamline position management.
But with greater power comes greater responsibility. The interconnected nature of cross margin means a single adverse move can cascade through your portfolio. Therefore, constant monitoring of maintenance margin ratio, free margin, and floating PnL is crucial.
Whether you're building complex delta-neutral strategies or scaling leveraged directional bets, understanding the mechanics of cross margin empowers smarter decisions—and stronger risk resilience.
👉 Start optimizing your trading strategy today with advanced cross margin tools built for performance.