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 06, 2025.
This strategy type is suitable for traders running delta neutral index arbitrage strategies that capture funding fees and basis. When using this strategy, you enjoy a higher USDT main account borrowing limit. At the same time, hedged positions are deprioritized 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 are not supported |
|---|---|
Account mode | Spot mode, futures mode |
Margin mode | Isolated margin |
Trading products | Options trading, spot grid, futures grid, spot DCA, futures DCA, smart arbitrage, smart portfolio, signal bot, flywheel |
Grow products | Flexible Loan, Dual Investment |
Transfer | Borrow to transfer out Note: Transfers out without borrowing are supported when the margin requirement is met. |
Collateral currency setting in multi-currency account mode | Customized collateral currencies Note: All currencies must be set as collateral. |
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 accounts in delta neutral strategy share a separate main account borrowing limit, which is independent of the main account limit under general strategy.
Other cryptocurrencies: Regardless of the strategy mode used, non-USDT cryptocurrencies share the same main account borrowing limit.
Example:
Suppose you have 5 sub-accounts, sub-accounts A and B are in general strategy, sub-accounts C, D, and E are in delta neutral strategy.
USDT borrowing limit: Your general strategy main account borrowing limit is 10 million and delta neutral strategy main account borrowing limit is 40 million. Then your sub-accounts A and B share the 10 million USDT borrowing limit and sub-accounts C, D, and E share the 40 million USDT borrowing limit.
BTC borrowing limit: Your main account borrowing limit is 1,750 BTC. Then your sub-accounts A, B, C, D, and E share the 1,750 BTC 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 | No adjustment yet |
Delta neutral | Not applicable | VIP 8: 40,000,000 VIP 7: 30,000,000 VIP 6: 20,000,000 VIP 5: 15,000,000 VIP 4: 8,000,000 VIP 3: 6,000,000 VIP 2: 4,000,000 VIP 1: 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.
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) | = ∑ All currencies (Currency equity × Currency’s USD price) |
|
Delta (USD) | = ∑ All currencies {Abs [Currency balance + Perpetual futures delta (currency) + Expiry futures delta (currency) ] × Currency’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: 1. Fiat currencies and stablecoins (including USDT, USDC, and USDG) aren’t included in the delta. 2. BETH and ETH will be considered the same cryptocurrency for combined calculation, and the same applies to OKSOL and SOL. 3. To facilitate a smoother trading experience for traders using crypto-margined arbitrage strategy, if the net delta of BTC, ETH, or SOL is long, it will be adjusted based on account equity, capped at a maximum of zero. If any of these cryptocurrencies has a net short delta, it will be calculated normally. |
|
Delta-to-equity | = Delta / Account Equity |
|
Delta risk status | NA |
|
Examples of adjusted delta
Example 1:
Your account equity is 500 USD. BTC delta is 100 USD, ETH delta is -150 USD, and SOL delta is 200 USD.
Before adjustment, account's delta (USD) = 100 + Abs (-150) + 200 = 450 USD
As BTC and SOL have a net long delta, they will be adjusted. ETH has a net short delta and will be calculated normally.
After adjustment, Account delta (USD) = Max [0, (100 + 200 – 500)] + Abs (-150) = 150 USD
Eventually, your Delta-to-equity = 150 / 500 = 0.3, and OKX will implement delta risk control based on the adjusted delta.
Example 2:
Your account equity is 500 USD. BTC delta is 400 USD, ETH delta is 400 USD, and SOL delta is -200 USD.
Before adjustment, account's delta (USD) = 400 + 400 + Abs (-200) = 1000 USD
As BTC and SOL have a net long delta, they will be adjusted. ETH has a net short delta and will be calculated normally.
After adjustment, Account delta (USD) = Max [0, (400 + 400 – 500)] + Abs (-200) = 500 USD
Eventually, your Delta-to-equity = 500 / 500 = 1, and OKX will implement delta risk control based on the adjusted delta.
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
In delta neutral strategy, your account will be restricted immediately when delta-to-equity is over the threshold. Refer to the table below for details:
Delta-to-equity ratio | Delta risk status | Restrictions | Conditions for lifting restrictions |
|---|---|---|---|
≤ 0.2x | Normal | None | NA |
> 0.2x | Transfers out restricted | You are restricted from transferring assets out of your trading account. | Reduce your delta-to-equity to 0.15x or below |
> 0.3x | Reduce-delta orders only | 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 increase your delta-to-equity, which may trigger different delta risk statuses. Pay attention to your delta risk status.
Deprioritized ADL 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 deprioritized 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 deprioritized.
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.
Note: While hedged positions are deprioritized in the auto-deleveraging (ADL) queue, they may still be subject to ADL during periods of extreme market volatility and you should be mindful of the risk.
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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