Isolated vs Cross Margin Explained

The difference between isolated and cross margin, the risk trade-off, and which mode suits which style of trader.

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Isolated margin

In isolated margin, only the margin you assign to a position is at risk. If it liquidates, the loss is capped at that margin and the rest of your balance is untouched. It is the safer default for high-leverage trades.

Cross margin

In cross margin, your whole account balance backs the position. That pushes the liquidation price further away, but a single bad trade can drain the entire account, not just one position's margin.

Which to use

Most traders use isolated for defined-risk, high-leverage setups, and cross for lower-leverage positions they actively manage or hedge. The trade-off: isolated caps your loss; cross lowers liquidation risk but raises your maximum loss. Either way, check the liquidation price first.

FAQ

Is isolated or cross margin safer?

Isolated is safer for capping losses - only the assigned margin is at risk. Cross margin is harder to liquidate but puts your whole balance on the line.

When should I use cross margin?

Cross suits lower-leverage positions you actively manage or hedge, where you want the trade to survive volatility without topping up margin.

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