Understanding Partial Position Reduction
When a user's position tier reaches Level 3 or higher, the platform may initiate partial position reduction instead of a full liquidation under specific conditions. This occurs when:
The position's margin ratio falls below:
- The current tier's maintenance margin rate + liquidation fee rate
BUT
- The current tier's maintenance margin rate + liquidation fee rate
Remains above:
- The lowest tier's maintenance margin rate + liquidation fee rate
👉 Learn how margin ratios affect your trades
How the Process Works
- Calculation: The system computes the number of contracts needed to reduce the position by two tiers.
- Execution: A partial reduction occurs, lowering exposure while preserving some holdings.
- Reassessment: If the margin ratio meets the new tier's requirements, the process stops. Otherwise, it repeats.
Key Trading Concepts Explained
Spot Trading (Coin-to-Coin)
Spot trading involves exchanging one cryptocurrency for another directly. Popular markets include:
- USDT pairs
- USD₮ stablecoins
- Major crypto pairs (BTC, ETH, OKB)
MXC IoT Blockchain
MXC Foundation focuses on:
- LPWAN IoT networks
- Decentralized data protocols via MXProtocol
Solving:
- IoT frequency conflicts via super nodes
- Resource allocation via smart bidding
- Cross-chain data markets via Polkadot's DataHighway
Dogecoin (DOGE)
Originally created as a joke, Dogecoin evolved into a:
- Peer-to-peer digital currency
- Tipping system for social media
- Fork of LucKYCoin (itself a Litecoin variant) with randomized block rewards
Pricing Mechanisms
| Term | Definition |
|---|---|
| Mark Price | Used for PnL calculations: Spot Index Price + Basis Moving Average |
| Index Price | Reference price from major spot exchanges |
| Order Price | User-specified price for limit orders |
Options Contracts
OKX offers:
- BTC/ETH options (call/put)
Two trading modes:
- Simplified – Streamlined interface
- Professional – Advanced tools for experienced traders
Grayscale-Related Tokens
These include assets covered by Grayscale Investment’s trusts, such as:
- BTC, ETH, LTC
- 11+ tokens available in OKX’s dedicated trading section
FAQs
Q: When does partial reduction trigger?
A: When margin ratios fall between tier thresholds but avoid full liquidation criteria.
Q: How is the reduction size determined?
A: By calculating contracts needed to drop two tiers, then reassessing margin status.
Q: Can partial reductions occur multiple times?
A: Yes, if margin ratios remain insufficient post-reduction.
Q: What advantages does this system offer?
A: Prevents unnecessary full liquidations during volatile markets.
👉 Discover advanced trading strategies
Q: How do mark prices protect traders?
A: They filter short-term volatility, reducing false liquidation risks.
Q: Where can I trade Grayscale-related tokens?
A: In OKX’s dedicated "Grayscale Concept Tokens" spot trading section.