Introduction to delta neutral strategy
Introduction
To provide better trading services and products that cater to different traders’ needs, OKX will launch the delta neutral strategy on November 05, 2025.
Delta neutral strategy is suitable for traders capturing funding fees and hedging by maintaining low delta exposure with offsetting positions. When using this strategy, you enjoy a higher USDT main account borrowing limit. At the same time, hedged positions are ranked lower in the auto-deleveraging (ADL) queue for better risk management. Correspondingly, you will be subject to delta risk control restrictions unique to delta neutral strategy, and certain functions are restricted.
Note: Delta neutral strategy is only available to VIP users. Your accounts are defaulted to general strategy until you switch an account to delta neutral strategy. In general strategy, you need to meet the initial margin and maintenance margin requirements, and there aren’t delta risk control restrictions.
Delta neutral strategy functional restrictions
Products | The following functions will be restricted |
|---|---|
Account mode | Can’t use: spot mode, futures mode |
Margin mode | Can’t use: isolated margin |
Trading products | Can’t trade: options Can’t use: spot grid, futures grid, spot DCA, futures DCA, smart arbitrage, smart portfolio, signal bot, flywheel |
Grow products | Can’t use: Flexible Loan, Dual Investment |
Collateral currency setting in multi-currency account mode | All currencies must be set as collateral |
Transfer | Can’t use: borrow to transfer out Note: Transfers out without borrowing are supported when the margin requirement is met. |
How to set or switch to delta neutral strategy
When creating a new sub-account, you can directly set the sub-account’s strategy type as delta neutral strategy.
You can switch the strategy type of a main account or a sub-account to delta neutral strategy in two ways:
Note: When you switch the strategy type for the main account, the strategy applies only to the main account itself, not to the sub-accounts. When switching strategy type, the system will validate if your account meets all the requirements.
1) Switching strategy type in the current account:
2) Switching strategy type of sub-accounts in the main account:
For API users, switch through the following API:
POST /api/v5/account/set-trading-config
Note: When you switch the strategy type for the main account, the strategy applies only to the main account itself, not to the sub-accounts. For OpenAPI users, you must create a sub-account first before setting the strategy type for that sub-account. When switching strategy type, the system will validate if your account meets all the requirements.
Separate main account borrowing limit for USDT
USDT: The main account and sub-accounts under delta neutral strategy mode share a separate main account borrowing limit, which is independent of the main account and sub-account limits under general strategy.
Other cryptocurrencies: Regardless of the strategy mode used, non-USDT cryptocurrencies share the same main account borrowing limit.
The USDT main account borrowing limit in the general strategy will gradually reduce, and the USDT main account borrowing limit in the delta neutral strategy mode will gradually increase. The first phase of adjustment will take place on October 29, 2025, and the results are as follows. Future adjustments will be announced separately.
Strategy type | Current USDT main account borrowing limit | Adjusted USDT main account borrowing limit |
|---|---|---|
General | VIP 8: 65,000,000 VIP 7: 60,000,000 VIP 6: 55,000,000 VIP 5: 50,000,000 VIP 4: 45,000,000 VIP 3: 40,000,000 VIP 2: 35,000,000 VIP 1: 30,000,000 Regular users: 5,000,000 | VIP8: 65,000,000 VIP7: 60,000,000 VIP6: 55,000,000 VIP5: 50,000,000 VIP4: 45,000,000 VIP3: 40,000,000 VIP2: 35,000,000 VIP1: 30,000,000 Regular users: 5,000,000 |
Delta neutral | Not applicable | VIP8: 40,000,000 VIP7: 30,000,000 VIP6: 20,000,000 VIP5: 15,000,000 VIP4: 8,000,000 VIP3: 6,000,000 VIP2: 4,000,000 VIP1: 2,000,000 Regular users: Not applicable to regular users. Only VIP users can use delta neutral strategy. |
For details of the main account borrowing limit of different cryptocurrencies and VIP tiers, refer to main account borrowing limit.
Note: For the most accurate main account borrowing limit data, update your app to the latest version or access the data on OKX web.
Lower ADL ranking for hedged positions
Delta-neutral account users can create hedged positions by taking offsetting directions across spot, expiry futures, and perpetual futures with the same base crypto.
Example | Calculation of hedged positions |
|---|---|
Assets and positions | Spot: 0.1 BTC USDT-margined perpetual futures: short 70 BTC-USDT-SWAP contracts, long 100 BTC-USDT-SWAP contracts Crypto-margined expiry futures: short 800 BTC-USD-SWAP contracts, long 500 ETH-USD-SWAP contracts |
Crypto’s delta exposure | Spot: 0.1 BTC USDT-margined perpetual futures: (100 – 70) × 0.01 BTC = 0.3 BTC net long position Crypto-margined perpetual futures: 800 × $100 / $100,000 = 0.8 BTC net short position (assuming BTC price is $100,000) BTC delta exposure = 0.8 – 0.1 - 0.3 = Short 0.4 BTC Crypto-margined perpetual futures: 500 × $100 / $1000 = 50 ETH net long position (assuming ETH price is $1,000) ETH delta exposure = Long 50 ETH |
Number of hedged positions for each contract | BTC-USDT-SWAP short position Unhedged contracts = 40 Hedged contracts = 30 BTC-USDT-SWAP long position Unhedged contracts = 0 Hedged contract amount= 100 BTC-USD-SWAP short position Unhedged contracts = 400 Hedged contracts = 400 ETH-USD-SWAP long position Unhedged contracts = 500 Hedged contracts = 0 |
For delta-neutral strategy users, contract positions are split into two separate portions for ADL ranking:
For expiry and perpetual futures positions that are fully or partially hedged, the hedged position will be ranked lower in the ADL queue, reducing the likelihood of it being auto-deleveraged.
For expiry and perpetual futures positions that are fully or partially unhedged, the unhedged position will be sorted normally in the ADL queue and will not be lower-ranked.
You can gauge ADL risk or how many contracts are considered hedged using the ADL warning indicator:
If you have an unhedged position, the indicator reflects the ranking of the unhedged portion.
If your position is fully hedged, the indicator reflects the ranking of the hedged portion.
To learn more about the ADL mechanism, refer to automatic-deleveraging: what it is and how it affects your positions.
Hedging and delta calculation
Under the same underlying, hedging can be done through opposite direction positions of spot, expiry futures, and perpetual futures. Positions held in opposite directions under different underlyings are not considered hedging and will be considered risk exposure. For example, BTC spot can’t be hedged with ETH-USDT perpetual position.
Field | Formulas | API field |
|---|---|---|
Account equity (USD) | = Account balance + Floating PnL |
|
Delta (USD) | = ∑ All currencies {Abs [Crypto balance + Perpetual futures delta (crypto) + Expiry futures delta (crypto) ] × Crypto’s USD price} Among them: USDT-margined perpetual and expiry delta = Contract face value × Number of contracts × Contract multiplier Crypto-margined perpetual and expiry futures delta = Contract face value × Number of contracts × Contract multiplier / Entry price Note: Fiat currencies and stablecoins (including: USDT, USDC, USDG) aren’t included in the delta. BETH and ETH will be considered the same cryptocurrency for combined calculation, and the same applies to OKSOL and SOL. If the delta of cryptocurrencies such as BTC, ETH, SOL is a net long delta, then the net long delta will be added up and adjusted based on account equity, up to a maximum of 0, to make the delta calculation more accurate. |
|
Delta-to-equity | = Delta / Account Equity |
|
Delta risk status | NA |
|
Example:
Suppose you have USDT, BTC, ETH, SOL, XRP in your account.
Cryptocurrency | Crypto equity | Crypto delta | Crypto USD Price | Crypto equity (USD) | Crypto delta (USD) |
|---|---|---|---|---|---|
USDT | 1,000,000 | NA | 1 | 1,000,000 | NA |
BTC | -1 | -1 | 100,000 | -100,000 | -100,000 |
ETH | 10 | 0 | 4,000 | 40,000 | 0 |
SOL | 10 | 10 | 200 | 2,000 | 2,000 |
XRP | 1,000 | 1,000 | 3 | 3,000 | 3,000 |
Account equity is 945,000 USD [ = 1,000,000 + (-100,000) + 40,000 + 2,000 + 3,000].
Delta is 103,000 USD [ = Abs (-100,000) + {Abs (2,000 + 0) – 945,000} + Abs (3,000)].
Delta-to-equity is 0.10 [ = 103,000 / 945,000] Rounded to 2 decimal places.
Note: OKX reserves the right to calculate hedging positions in its sole discretion based on the calculation methodology described above.
To view your account’s delta risk status, delta-to-equity, and delta value, go to the trading page or the trading account asset page:
1) Trading page
2) Trading account asset page
For API users, query through the following API:
Get /api/v5/account/balanceGet /api/v5/account/subaccount/balances
Delta risk control restrictions
As accounts under delta neutral strategy enjoy a separate main account borrowing limit and lower ADL rank for their hedged positions, OKX implements delta risk control on top of existing risk management to ensure these sub-accounts maintain low delta risk.
In delta neutral strategy, different restrictions will be applied to your accounts under different delta risk status. The delta status of your account depends on the delta-to-equity ratio of the account.
Delta risk status | Delta-to-equity ratio | Restrictions | Conditions for lifting restrictions |
|---|---|---|---|
Normal | ≤ 0.2x | None | NA |
Transfers out restricted | > 0.2x | You are restricted from transferring assets out of your trading account. | Reduce your delta-to-equity to 0.15x or below |
Reduce-delta orders only | > 0.3x | You can only place one new order per underlying to reduce the delta, and you can't have other pending orders in the same underlying. Spot, expiry futures, and perpetual futures of the same crypto are considered one underlying. For API users, you won’t be able to place batch orders. If this restriction is triggered and your account delta is larger than 500,000 USD, all your pending limit, market and advanced limit orders will be canceled. | Reduce your delta-to-equity to 0.25x or below |
Note: Transferring assets out of your trading account may trigger different delta risk statuses.
Disclaimer
This document is provided for informational purposes only. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, hold or offer any services relating to digital assets. Digital asset holdings, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. Leveraged trading in digital assets magnifies both potential gains and potential losses and could result in the loss of your entire investment. Past performance is not indicative of future results. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition, particularly if considering the use of leverage. You are solely responsible for your trading strategies and decisions, and OKX is not responsible for any potential losses. Not all products and promotions are available in all regions. For more details, please refer to the OKX Terms of Service and Risk & Compliance Disclosure.
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