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That means, if you use BTC-USDT perpetual to hedge options, it'll not bring any margin offset benefit. Portfolio margin liquidation starts with delta hedging, which means using perpetual or future to hedge delta risk instead of liquidating options directly to avoid slippage on options. Please be mindful of the account risk as liquidation could be very costly too.Which position type should I choose when trading Options on OKX?

Go to Trade > Positions Select the position you want to reverse Select the Reverse button (double-arrow icon for App) Note: this feature is available only in One-Way Mode; Hedge Mode isn't supported.

This can result in wide bid/ask spreads and limit the choices to express a view or hedge a risk. Counterparty risk: options are contracts between two parties, so they come at a risk that the trading counterparty won't deliver. Liquidation risk: options can reduce but also increase exposure to market movements, sometimes in a big way. Traders who don't manage their capital efficiently properly and trade on margin can get liquidated.Why should I trade options on the OKX Liquid Marketplace?

Maintains Market Stability: It acts as a layer of protection against major market volatility, hedging against liquidity risks and reducing the potential for a cascading chain of liquidations.3. What Contributes to the Security Fund? The Security Fund is self-sustaining and is funded primarily by collecting profits generated during the liquidation process.When a leveraged position is liquidated: The liquidation engine takes over the position.