📚 Cross margin vs isolated margin: what’s the difference?
Margin trading lets you amplify gains with leverage – but also magnifies risks. That’s why knowing the difference between cross and isolated margin is crucial:
⚡️ Cross Margin
Collateral is shared across positions. Profits from one trade can support losses in another, reducing forced liquidations. The flip side: if the market turns against you, your whole account is at risk.
🔒 Isolated Margin
Collateral is locked per trade. Losses are capped to that bucket, keeping the rest of your account safe. The downside is more frequent liquidations if a position isn’t topped up.
🔵 Cross suits hedged or multi-leg strategies.
🔵 Isolated fits focused trades and beginners who want risk capped.
Both are tools. Choosing the right one depends on your strategy and risk tolerance.
Read the full breakdown in our Blog – we unpack when to use each and how to manage risks the smart way.
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