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

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 type 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.

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.

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 ETH have a net long delta, they will be adjusted. SOL 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/balance

• Get /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:

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.

ADL ranking deprioritization for hedged positions

Delta-Neutral Strategy users can create hedged positions by taking offsetting directions across spot, expiry futures, and perpetual futures with the same underlying asset.

For General Strategy users, creating positions by taking offsetting directions of assets and futures with the same underlying asset would not be classified as hedged. Therefore, all positions are ranked in the ADL queue by leveraged P&L ratio as usual.For Delta-Neutral Strategy users , positions are split into two parts for ADL ranking:

• The unhedged part is ranked by leveraged P&L ratio as usual

• The hedged part will be ranked lower than all unhedged positions in the ADL queue to reduce the probability of being deleveraged

Note: All hedged positions are still ranked by leveraged P&L ratio. Even with lower priority, hedged positions may still be subject to ADL.

To reduce ADL risk of your position, you could:

• Add margin to lower account effective leverage

• Reduce positions to lower the maintenance margin requirement

• Use Delta‑Neutral Strategy and ensure positions are fully hedged

• Prioritize trading major coins and contracts with deeper liquidity

If your position is being deleveraged, converting previously hedged position into an unhedged position, close or rebalance your position promptly to mitigate further ADL risk.

Users can reference the estimated ADL probability and hedging status of each position via the ADL indicator light. There are 1 to 5 bars on the ADL indicator light; more filled bars indicate a higher probability of ADL.

• If your position is unhedged or partially hedged, the indicator reflects only the ranking of the unhedged part

• If your position is fully hedged, the indicator reflects the ranking of the hedged part

Hedged Position Calculation Examples:
I. Partially Hedged Position Example
You currently hold 1,000,000 DOGE spot; a 700-contract short in USDT‑margined DOGE‑USDT perpetual (equivalent to a 700,000 DOGE short exposure); a 100‑contract long in USDT‑margined DOGE‑USDT perpetual (equivalent to a 100,000 DOGE long exposure); and an 8,000‑contract short in coin‑margined DOGE‑USD expiry (assuming DOGE is priced at $0.10, equivalent to an 800,000 DOGE short exposure).

DOGE coin‑level delta exposure = 1,000,000 − 700,000 + 100,000 − 800,000 = 400,000 DOGE short.

If the USDT‑margined DOGE‑USDT perpetual long is subject to ADL, the 100 hedged contracts will be ranked after all unhedged positions in the ADL queue.

If the coin‑margined DOGE‑USD perpetual short is subject to ADL, 4,000 unhedged contracts (equivalent to a 400,000 DOGE short exposure) will be first deleveraged. The remaining 4,000 hedged contracts will be ranked after all unhedged positions in the ADL queue.

Assuming all unhedged contracts are deleveraged, the DOGE coin‑level delta exposure becomes 0; all remaining DOGE positions are hedged. If DOGE contracts are subject to ADL again, those positions will be ranked after all unhedged positions in the ADL queue.

II. Fully Hedged Position Example
You currently hold 1,000,000 DOGE spot; a 700‑contract short in USDT‑margined DOGE‑USDT perpetuals (equivalent to a 700,000 DOGE short exposure); a 500‑contract long in USDT‑margined DOGE‑USDT perpetuals (equivalent to a 500,000 DOGE long exposure); and an 8,000‑contract short in coin‑margined DOGE‑USD expiry (assuming DOGE is priced at $0.10, equivalent to an 800,000 DOGE short exposure).

DOGE coin‑level delta exposure = 1,000,000 − 700,000 + 500,000 − 800,000 = 0 DOGE.

All DOGE positions are fully hedged. If any DOGE contract is subject to ADL, those positions will be ranked after all unhedged positions in the ADL queue.

To learn more about the ADL mechanism, refer to automatic-deleveraging: what it is and how it affects your positions.

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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