How to Use Cross Margin and Isolated Margin Modes for Trading?

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What Is Cross Margin Mode?

In Cross Margin mode, all positions under the same margin asset share the same margin balance. If a forced liquidation is triggered, the maximum loss is limited to the total margin and position value under that asset. Cross Margin trading offers several advantages:

  1. Shared Margin Pool: Flexible allocation of margin reduces liquidation risks during market volatility.
  2. Capital Efficiency: Consolidated margin improves fund utilization and minimizes additional margin requirements.
  3. Risk Diversification: Losses from one position can be offset by profits from others, effectively spreading risk.

How to Trade Using Cross Margin Mode?

  1. Open the app and navigate to the [Trading] page. Select [Cross Margin] mode for contract trading.
  2. Adjust leverage and set your margin amount.
  3. Review and confirm the order execution.

👉 Master Cross Margin trading strategies

What Is Isolated Margin Mode?

In Isolated Margin mode, each position's margin is calculated independently. During liquidation, losses are confined to that position’s margin. Benefits of Isolated Margin include:

  1. Risk Containment: Losses are isolated to the specific position, safeguarding other trades.
  2. Position Control: Enables granular management of individual positions.
  3. Custom Margin Allocation: Traders can assign specific margin amounts based on risk tolerance.

How to Trade Using Isolated Margin Mode?

  1. In the app’s [Trading] page, select [Isolated Margin] for contract trading.
  2. Set leverage and margin parameters.
  3. Verify and execute the order.

How to Configure Margin Modes Across Multiple Assets?

To batch-configure margin modes for multiple assets without manual adjustments:

  1. Click [Margin Mode Management] in the menu, then select the assets to configure.

👉 Optimize your margin strategy across portfolios

FAQs

Q: Which margin mode is better for beginners?
A: Cross Margin is often preferred for its risk-sharing benefits, while Isolated Margin suits those seeking precise control.

Q: Can I switch between margin modes after opening a position?
A: No, the margin mode is locked once a position is active. Close and reopen to change modes.

Q: How does leverage impact margin requirements?
A: Higher leverage reduces initial margin but increases liquidation risks proportionally.

Cross Margin and Isolated Margin each have unique strengths. Choose based on your risk appetite and trading objectives. Regardless of mode, successful margin trading requires meticulous planning, real-time monitoring, and robust risk management.


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- Position Management  
- Risk Diversification  

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