OKEx is excited to announce the launch of its innovative Tiered Margin System for crypto margin trading, designed to enhance risk management while significantly increasing borrowing limits.
Key Features of the New Tiered Margin System
The upgraded system introduces several improvements over traditional margin trading mechanisms:
Comparative Analysis: Old vs. New System
| Feature | Tiered Margin (New System) | Traditional Margin (Old System) |
|---|---|---|
| Leverage Options | Up to 10X, adjustable | Maximum 5X, fixed |
| Borrowing Limits | Higher limits (up to 10X increase possible) | Fixed limits |
| Liquidation Process | Gradual position reduction | Full position liquidation |
| Margin Requirements | Tiered maintenance (as low as 5% for BTC/USDT) | Fixed 10% maintenance margin |
👉 Discover how tiered margin trading works
Advantages of Tiered Margin Trading
Flexible Leverage Options
- Choose from multiple leverage levels up to 10X
- Adjust your leverage according to market conditions
Increased Borrowing Capacity
- Average borrowing limits increased by ~10X
- Lower leverage tiers offer higher borrowing potential
Smarter Liquidation Mechanism
- Partial position reduction instead of full liquidation
- Preserves remaining positions during market volatility
Risk Management Considerations
Traders should note these important aspects:
- Maintenance margin rates vary by tier
- Higher tiers require more maintenance margin
- Monitor positions closely to avoid unexpected reductions
👉 Learn advanced margin trading strategies
Frequently Asked Questions
Q1: When did the tiered margin system launch?
A: The system went live on December 9, 2019.
Q2: What's the maximum leverage available?
A: Users can access up to 10X leverage with the new system.
Q3: How does the liquidation process differ?
A: Instead of full liquidation, positions are reduced gradually when reaching maintenance levels.
Q4: Are borrowing limits really 10X higher?
A: Yes, average borrowing capacity increased significantly, particularly at lower leverage tiers.
Q5: What cryptocurrencies support this system?
A: Major pairs like BTC/USDT feature maintenance margins as low as 5%.
OKEx remains committed to delivering innovative trading solutions and exceptional service to our global user base.