Understanding when your order might be liquidated is crucial for any trader engaging in margin or derivatives trading. Liquidation can significantly impact your trading strategy and capital, so knowing the exact conditions under which it occurs helps you manage risk more effectively. In a unified account on OKX, liquidation is triggered not when your margin level hits zero—but much earlier, at a critical threshold that protects both the trader and the broader market.
This article explains how margin level, liquidation triggers, and risk controls work within OKX’s unified account system. We’ll also explore tools to estimate your liquidation price, clarify common misconceptions, and guide you through different margin modes so you can trade with greater confidence.
How Margin Level Triggers Liquidation
In a unified trading account, the margin level is the key metric determining whether your open positions remain active or face liquidation. When this level drops below 100%, your position becomes vulnerable to partial or full closure.
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Contrary to a widespread belief, liquidation does not occur when your margin balance reaches 0%. By that point, the damage would already be severe. Instead, OKX implements an early intervention mechanism: once the margin level falls beneath 100%, automated risk controls activate to close part or all of your position.
When liquidation occurs, a liquidation clearance fee is collected. This fee contributes to the OKX insurance fund, which helps cover potential losses from deeply underwater positions and maintains platform stability during volatile market conditions.
Partial vs. Full Liquidation: What You Need to Know
Not all liquidations result in the complete closure of your position. Depending on your position tier and account structure, you may experience partial liquidation first.
Here’s how it works:
- If your margin level dips below 100%, the system begins reducing your exposure incrementally.
The platform will close portions of your position until either:
- The margin level returns to an acceptable range, or
- All related positions are fully closed.
This tiered approach is one of OKX’s core risk management protocols. It prevents sudden, large-scale market shocks that could arise from dumping massive positions all at once—especially important during periods of high volatility or low liquidity.
For traders holding significant positions, this means better protection not only for themselves but for the overall market ecosystem.
Estimating Your Liquidation Price
To help you stay ahead of potential liquidation events, OKX provides a built-in liquidation price calculator. You can find this tool at the bottom of the derivatives product trading page, where it dynamically estimates the price point at which your position may be closed.
However, there’s an important caveat:
If you’re running multiple open positions within a unified account, the estimated liquidation price shown may differ from the actual price at which liquidation occurs. This discrepancy arises because the unified account model aggregates risk across all positions, meaning performance in one trade can affect the margin status of another.
Therefore, while the calculator is a valuable planning tool, always treat its output as an approximation—not a guarantee.
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How Margin Level Is Calculated by Account Mode
Your account mode directly impacts how margin level is calculated—and thus, when liquidation might occur. Understanding these differences empowers you to choose the setup best suited to your trading style and risk tolerance.
Below are key configurations available on OKX:
Single-Currency Margin Mode (Cross Margin)
In this mode, margin is calculated using a single cryptocurrency (e.g., BTC) across all positions denominated in that asset. Gains or losses in one position affect the available margin for others in the same currency.
Multi-Currency Margin Mode (Cross Margin)
This allows multiple currencies to contribute to your overall margin pool. For example, ETH, USDT, and BTC balances can collectively back your leveraged trades, increasing capital efficiency.
Isolated Margin Trading (Single or Multi-Currency)
With isolated margin, each position has its own dedicated margin allocation. Losses in one trade don’t directly impact others, offering more control—but less flexibility in resource sharing.
Each mode comes with unique advantages and trade-offs. To dive deeper into how these systems calculate margin levels and influence liquidation risk, explore OKX's official guides tailored to each setup.
Frequently Asked Questions (FAQ)
Q: Does liquidation happen exactly at 100% margin level?
A: No. Liquidation is triggered when the margin level falls below 100%. Once it crosses that threshold downward, the system initiates partial or full closure depending on your position size and tier.
Q: Can I avoid liquidation if I deposit more funds after hitting 100%?
A: Yes—provided the action happens before automatic liquidation executes. Adding additional margin can restore your margin level above 100%, potentially avoiding closure. However, in fast-moving markets, execution speed is critical.
Q: Why does OKX use partial liquidation instead of closing everything at once?
A: Partial liquidation minimizes market impact. Closing large positions abruptly can cause slippage and volatility spikes. Gradual reduction supports fairer pricing and protects other traders.
Q: Is the liquidation price fixed once I open a trade?
A: Not necessarily. In dynamic markets, funding rates, price movements, and changes in collateral value can shift your estimated liquidation price over time.
Q: Are there fees associated with liquidation?
A: Yes. A liquidation clearance fee is charged when your position is closed due to insufficient margin. This fee supports the insurance fund and discourages excessive risk-taking.
Q: Can I track my current margin level in real time?
A: Absolutely. The unified account dashboard displays real-time margin levels, liquidation prices, and risk indicators for all active positions.
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Final Thoughts
Staying informed about when and why liquidation occurs gives you a strategic edge in derivatives trading. On OKX’s unified account system, monitoring your margin level—not just your balance—is essential to avoiding unexpected closures.
By leveraging tools like the liquidation price calculator, understanding your chosen margin mode, and recognizing how partial liquidations function, you’re better equipped to manage risk proactively.
Trading leveraged products involves significant risk, but knowledge transforms uncertainty into opportunity. Stay ahead of the curve—and keep your positions secure—with real-time insights and disciplined risk control.