How Is OKX Hedge Mode Margin Calculated? New Rules, Usage, and Liquidation

OKX

29 September 2026

The core logic of OKX hedge mode (two-way position mode) margin is that long and short sides are calculated separately and then the maximum value is taken, rather than simply added together. This means if you hold both long and short positions at the same time, the margin usage is usually lower than the sum of both sides. But taking the maximum does not mean the risk disappears — the liquidation line still depends on whether the maintenance margin rate (MMR) falls below 100%, and within the MMR composition, the "effectiveness" of the hedge strategy is the key variable.

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New Rule: Take Max Instead of Adding

According to OKX's adjustment, in the rule that started grayscale rollout on September 22, 2026 and is expected to be fully applied by October 12, the contract IMR/MMR calculation method under cross-margin two-way positions has changed: the long and short sides are calculated separately and then the maximum is taken, rather than simply added together. Isolated margin accounts are not affected by this rule.

This change benefits scenarios where you have both long and short positions or pending orders on the same underlying asset. Under the old method, the margin requirements on both sides were directly added together; under the new method, only the higher side is taken. If your hedge structure is symmetrical, your available margin will be more relaxed than before.

But there is a common pitfall here: "taking Max" only changes the usage, not the liquidation trigger conditions. Your MMR is still the result of combined long and short risk, and liquidation depends on the maintenance margin rate, not on "lower usage means safer."

How Is Margin Actually Calculated in Hedge Mode

In two-way position mode (Hedge Mode), the official OKX formula is:

Margin requirement = |Long position notional value + Open buy order value| / Leverage + |Short position notional value + Open sell order value| / Leverage

This is the basic formula for isolated margin or when portfolio margin optimization is not applied. In cross-margin two-way scenarios, the new rule takes the Max of the two sides after calculation.

If you are using Portfolio Margin mode, the logic is different. It calculates by risk unit: perpetual, delivery, options, and even spot of the same underlying asset (such as ETH) are grouped into one risk unit. The system simulates the maximum loss of the portfolio under extreme market conditions to derive the maintenance margin for that unit, and then sums the MMR of all risk units.

How to Understand Margin Usage for Spot Hedging

In Portfolio Margin mode, spot hedging includes your spot holdings in the risk unit, forming a hedge structure with derivatives positions. The key mechanism is: spot assets used for hedging are not locked, but are dynamically adjusted based on your asset structure, and even negative asset hedging is supported.

You can open the Positions section on the trading page, filter by Risk Unit, and view the amount of "Spot hedge usage." This is the direct basis for judging whether your hedge structure is effective and whether margin has been reduced.

Note: Spot hedge usage is not a "fixed deduction" amount. It changes dynamically with market conditions and your position structure. When the system simulates your operations (placing orders, transferring funds, closing hedges), if the risk level is too high, it will prompt you to adjust the amount.

What Liquidation Depends On

Regardless of the mode, the liquidation trigger condition is that the maintenance margin rate (MMR) falls below a specific threshold.

In Portfolio Margin mode, when MMR falls below 300%, the system sends a liquidation warning, and when it falls below 100%, liquidation is triggered. The liquidation process is executed in order: first stablecoin risk dynamic hedging, then general dynamic hedging, then basis hedging, and finally gradual position reduction until the account returns to a safe state.

This means that if your hedge structure fails under extreme market conditions (for example, the basis widens sharply or liquidity dries up), MMR can deteriorate rapidly. The "lower usage" brought by taking Max will not stop this process.

What You Should Check

If your account uses cross-margin two-way positions, open the Positions area on the trading page and check the current margin usage and maintenance margin rate to confirm whether the new method has already been applied. Portfolio margin users should additionally check the "Spot hedge usage" under the Risk Unit view.

Copy trading users need to pay special attention: if your copied positions do not form a symmetrical hedge within your account (for example, you only copied long positions without corresponding short positions), the new rule will not give you the "take Max" benefit. Your budget should still leave a buffer based on the worst-case one-way scenario.