EEA Spot Margin FAQ
What Is Margin Trading?
Spot Margin lets you borrow crypto to increase your buying power or sell an asset short while trading on the Spot market.
Unlike a derivative, a Spot Margin trade involves buying or selling the actual crypto asset. If you buy crypto using Spot Margin, the purchased crypto is added to your account and anything you borrow remains a liability that needs to be repaid.
On selected markets, you can take long or short positions with up to 10x leverage.
Because Spot Margin uses leverage, losses can be amplified and liquidation can occur. Make sure you understand borrowing, collateral, repayment and margin requirements before trading.
How is Spot Margin regulated?
Spot Margin combines two elements that are treated differently under the current regulatory framework:
The Spot trading service, through which you buy or sell crypto assets, falls under the EU Markets in Crypto-Assets Regulation (MiCA) and is provided by OKX Europe Limited as an authorised crypto-asset service provider.
Crypto-asset lending and borrowing are currently outside the scope of MiCA. This means that the protections provided under MiCA for the Spot trading service may not apply to the borrowing element of Spot Margin.
How does Spot Margin trading work?
Spot Margin combines your available balance with borrowing.
When auto-borrow is enabled, OKX uses the available amount of the required crypto first and automatically borrows only the remaining amount needed to fund your order.
This means selecting 2x, 5x or 10x doesn't necessarily mean every trade will use exactly that level of leverage. How much you actually borrow depends on factors including your order size and available balance.
Example: buying BTC with Spot Margin
Suppose you have 325 USDC available and place a 400 USDC BTC order.
approximately 325 USDC comes from your available balance
approximately 75 USDC is borrowed
borrowing costs apply to the 75 USDC borrowed
you receive the BTC you purchased
the borrowed USDC and applicable borrowing costs need to be repaid
This is balance-first borrowing: use your available balance first and borrow only the remaining amount needed for the trade.
How to use Spot Margin ?
To set up your Spot Margin trade, please refer to the video below.
How does borrowing work?
Spot Margin lets you borrow eligible crypto to fund part of a trade.
The asset you borrow becomes a liability in your account until it is repaid.
If you borrow USDC, you owe USDC.
If you borrow BTC, you owe BTC.
Borrowed assets can't be transferred out while they remain recorded as liabilities.
Under the Spot Margin Trading Agreement, you borrow the crypto assets from OKX Europe Limited. The service uses matched lending supply to make eligible crypto assets available for borrowing.
Can I go long or short with Spot Margin?
Yes, on supported markets.
Going long
To increase your buying power, you can borrow the quote asset and use it to buy more of the base asset.For example, you could combine your available USDC with borrowed USDC to buy BTC.If BTC rises, the larger position can increase your gains. If BTC falls, it can also increase your losses.The amount borrowed and applicable borrowing costs still need to be repaid.
Going short
To take a short position, you can borrow the base asset and sell it.For example:
Borrow BTC.
Sell the BTC.
Buy BTC back later.
Repay the BTC you borrowed.
If BTC falls, you may be able to buy it back for less. If BTC rises, buying back the BTC you owe becomes more expensive.Borrowing costs can continue while the BTC liability remains outstanding.
Do I borrow the full value of my order?
Not necessarily.
When auto-borrow is enabled, your available amount of the required asset is used first. OKX borrows only the remaining amount needed to fund the order.
For example, if you have 800 USDC available and place a 1,000 USDC order, approximately 200 USDC may need to be borrowed.
This is why your order value and amount borrowed aren't necessarily the same thing.
Does selecting 10x mean I'm actually trading at 10x?
Not necessarily.
The leverage setting determines the trading capacity available to you, but how much you actually borrow also depends on your available balance and order size.
For example, two traders could place the same 1,000 USDC order but borrow different amounts if one already has more USDC available.
Maximum leverage, borrowing limits and borrowing rates can also vary by market.Selected Spot Margin markets support up to 10x leverage.
How do Spot Margin borrowing costs work?
Borrowing costs apply to the amount you actually borrow rather than automatically to the full value of your Spot order. Under the Spot Margin Trading Agreement, these borrowing costs are called "borrowing fee."
They are calculated hourly, at the top of each hour, based on your outstanding liability.
For example:
you borrow crypto at 22:55 UTC
no borrowing cost is charged immediately
at 23:00 UTC, the system checks your outstanding liability
the applicable borrowing cost is calculated based on what remains outstanding at that time
If you fully repay the borrowed asset at 22:57 UTC, before the next hourly calculation, no borrowing cost is charged for that borrowing period.
Borrowing rates and the amount available to borrow can change. Check the current rate and available amount before trading.
What costs should I consider when trading Spot Margin?
The borrowing rate is only one part of what a Spot Margin trade can cost.
Consider:
Standard trading fees apply to each order, including orders used to open or close a position. Check the current trading fee rates.
A borrowing fee applies while the borrowed liability remains outstanding. Check the current borrowing rate in the Spot Margin trading interface before placing an order.
If your position is liquidated, liquidation fees and position-reduction-related costs may apply. See the Forced Liquidation FAQ for the applicable fee information.
Looking at these costs together gives you a better picture of what the trade can cost than looking at APR alone.
Can borrowing rates change?
Yes.
Borrowing rates and available borrowing can change depending on the asset, market conditions and available liquidity.
An APR you saw on an earlier trade therefore shouldn't be treated as permanent.
Check the current rate and available amount before placing a new trade.
How do I repay what I've borrowed?
Anything you borrow becomes a liability that needs to be repaid.
You can repay all or part of the borrowed assets and applicable borrowing costs, provided you continue to meet the required margin requirements.
Once the outstanding principal and applicable borrowing costs have been fully repaid, corresponding margin that was locked because of the borrowing can be released.
For a margin long, this might mean repaying the quote asset you borrowed to make the purchase.
For a margin short, you need to obtain enough of the base asset to repay what you borrowed.
What can I use as collateral?
Eligible assets in your account can be used as collateral for Spot Margin.
With Selected Margin, you choose eligible assets that can contribute to the margin supporting your positions.
This can improve capital efficiency because selected assets already in your portfolio can support margin positions together.
It also creates broader balance exposure. Assets you select as collateral can participate in supporting losses across your margin positions.
With Isolated Margin, the margin supporting an individual position is kept separate.
What's the difference between Spot, Spot Margin and X-Perps?
Spot | Spot Margin | X-Perps | |
|---|---|---|---|
What you trade | Actual crypto | Actual crypto | Derivative contract |
How the trade is funded | Your available balance | Your balance plus borrowing where needed | Margin supports a derivative position |
Long | Yes | Yes | Yes |
Short | Sell crypto you already own | Borrow and sell the asset | Open a short derivative position |
Built-in leverage | No | Up to 10x on selected markets | Depends on the contract |
Ongoing financing | No borrowing cost | Borrowing costs | Funding |
What you hold | Purchased crypto | Purchased crypto and any outstanding borrowing liability | Derivative position |
Liquidation risk from leverage | No | Yes | Yes |
Spot Margin can be used when you want to trade the actual Spot asset while increasing buying power or selling an asset short.
X-Perps provide leveraged directional exposure through a derivative instead.
X-Perps are provided by OKX Europe Markets Limited, which is authorised and regulated by the Malta Financial Services Authority under the Investment Services Act. X-Perps are not provided under OKX Europe Limited's MiCA crypto-asset service provider authorisation. See Who can access X-Perps? for more information.
What are the main risks of Spot Margin?
Leverage can amplify losses
Leverage increases your market exposure.
This can increase gains when the market moves in your favour, but it can also increase losses when the market moves against you.
Liquidation can occur
Your account needs to maintain sufficient margin to support your leveraged positions.
If you no longer meet the applicable maintenance margin requirements, some or all of your positions or collateral can be liquidated.
You may remain responsible for a shortfall
Liquidation does not necessarily limit your losses to the amount you initially allocated to a position.
If selling your margin assets isn't sufficient to cover the margin deficiency, you may remain responsible for the resulting shortfall.
Borrowing costs can accumulate
Borrowing costs can continue while your liability remains outstanding.
A trade that remains open longer can therefore cost more to maintain.
Borrowing rates and limits can change
Each margin market can have different leverage limits, borrowing limits and borrowing rates.
These can change based on market conditions and available liquidity.
Selected Margin can expose more of your balance
Selected Margin lets eligible assets support your positions together, which can improve capital efficiency.
The trade-off is broader balance exposure if one or more leveraged positions move against you.
When can liquidation happen?
Liquidation can occur when your account no longer meets the applicable maintenance margin requirement.
The current EEA Spot Margin rules state that liquidation happens when the margin ratio reaches 100%, while the default margin-call alert is set at 300%.
Margin requirements can differ depending on factors including your position tier or trade size.
Always monitor your current margin level rather than relying only on the leverage selected when you opened the trade.
What can I do to manage liquidation risk?
You can:
Monitor your margin level. Keep track of your margin ratio and estimated liquidation price.
Use less leverage. Higher leverage generally means less room for the market to move against your position before liquidation becomes a risk.
Use stop-loss orders. A stop-loss can trigger an order when a specified price is reached. Execution isn't guaranteed at a particular price, especially during volatile markets.
Choose your margin mode carefully. Selected Margin and Isolated Margin expose collateral differently.
Monitor your liabilities and borrowing costs. Understand what you owe and how the cost of maintaining the liability changes over time.
Use liquidation alerts. Alerts can help you monitor when your margin ratio approaches the applicable maintenance requirement.
What happens if I'm liquidated?
If your account no longer meets the applicable maintenance margin requirements, OKX may sell margin assets or close positions to address the margin deficiency.
Depending on the circumstances, liquidation can involve part or all of the relevant position or collateral.
If any funds remain after the applicable liabilities and losses have been covered, they remain in your account.
If the sale of your margin assets isn't enough to cover the margin deficiency, you may remain responsible for the shortfall.
Can borrowed crypto be withdrawn?
No.
Borrowed assets remain recorded as liabilities and can't be transferred out. They need to be repaid to remove the liability.
What do I need before I can use Spot Margin?
You need to:
be a registered and verified OKX user
be legally eligible to access Spot Margin in your jurisdiction
complete the comprehensive suitability assessment
accept the applicable Spot Margin terms
Where can I find the current borrowing rate, leverage and borrowing limit?
Check the Spot Margin trading interface before placing your order.
Maximum leverage, borrowing rates and borrowing limits can vary by market and change over time, so check the current values for the market you want to trade.