OKX Introduces Delta Neutral Strategy To Support Advanced Arbitrage And Risk Management For VIP Traders
In Brief
OKX has launched a VIP-only delta neutral strategy, enabling market-neutral trading with higher USDT borrowing limits, hedging benefits, and enhanced risk management.
Cryptocurrency exchange OKX announced the introduction of a delta neutral strategy designed to enhance its trading offerings and meet the diverse needs of market participants. The strategy is intended for traders employing delta neutral index arbitrage methods that seek to capture funding fees and basis opportunities.
Under this framework, users benefit from a higher USDT main account borrowing limit, while hedged positions receive lower priority in the auto-deleveraging (ADL) queue to improve overall risk management. However, accounts using this strategy are also subject to specific delta risk control measures and certain feature limitations.
The delta neutral strategy is currently available exclusively to VIP users. By default, all accounts operate under the general strategy unless manually switched to delta neutral. Accounts using the general strategy must continue to meet standard initial and maintenance margin requirements and are not subject to delta-specific risk restrictions.
OKX Introduces New Borrowing Limits And Enhanced Risk Controls For VIP Traders
OKX has detailed the technical framework and limitations of the strategy. The exchange clarified that certain functions—including options trading, grid strategies, DCA tools, and lending products—are not supported under this mode, and only VIP users can access the feature.
Users can activate the delta neutral strategy by setting it during sub-account creation or switching from an existing account, subject to eligibility verification. The strategy introduces a separate borrowing limit structure for USDT, distinct from general accounts, with adjustments beginning October 29th.
OKX also outlined how delta is calculated across spot, futures, and perpetual positions, emphasizing that only positions with the same underlying asset qualify as hedged. Accounts exceeding specific delta-to-equity thresholds will face restrictions such as transfer limitations or reduced trading capabilities until risk levels normalize.
Additionally, the platform confirmed that hedged positions will be deprioritized in the auto-deleveraging (ADL) queue to reduce liquidation risk during volatile conditions. The delta neutral strategy ultimately aims to support complex arbitrage and market-neutral trading strategies while strengthening overall platform stability and capital efficiency.
Delta-Neutral Strategy: A Market-Neutral Approach For Managing Risk And Capturing Yield In Volatile Markets
A delta-neutral strategy is a trading or hedging approach used primarily by options and derivatives traders in both traditional and crypto markets. Essentially, the idea is to construct a portfolio of long and short positions in such a way that the net delta — which measures how much the value of the position is expected to change when the underlying asset’s price moves by $1 — is close to zero.
This means that small price movements in the underlying asset have little direct impact on the portfolio’s value, allowing traders to focus on other variables such as volatility, time decay (theta), funding rates (especially in cryptocurrencies), basis differentials or arbitrage, rather than simply whether the asset goes up or down.
It is often used by professional or institutional market participants, for example options market-makers, arbitrage desks, or those running capital‐efficient strategies in crypto derivatives. These traders use delta-neutral setups to manage directional risk, hedge exposure, extract yield from funding rates, or profit from volatility rather than price direction.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
