Cross Margin | Isolated Margin

Isolated-margin mode

The isolated-margin mode means that the margin of the position is independently separated from the trader's account balance. In this margin mode, traders can freely decide the leverage used. If the position is liquidated, the maximum loss that the trader needs to bear is the position margin.

Advantages of isolated-margin mode

With its stop loss, liquidation will not affect other assets.

Disadvantages of isolated-margin mode

Need to manually adjust the margin.

Cross-margin mode

The cross-margin mode refers to using all the available balances in the corresponding currency as the position margin to maintain the position to avoid forced liquidation. In this margin mode, forced liquidation will be triggered when the net asset value is insufficient to meet the maintenance margin requirements. If the position is forced to close, the trader will lose all the assets in the balance account (cross-margin account).

Advantages of Cross-Margin Mode

Easy to use; all assets are guaranteed for all positions; high capital utilization rate; no need to transfer.

Disadvantages of Cross-Margin Mode

A huge loss in one position will implicate other positions when there are multiple positions.

Suggestion

• Use the cross margin for the mainstream currency, and use the isolated margin for the non-mainstream currency because the uncertainty of the non-mainstream currency is too high.

• If you open long and short positions at the same time, use the cross margin.

• If you have a strict trading strategy, use the isolated margin.

Margin adjustment

Only isolated positions can adjust the margin. When adjusting the isolated margin:

The maximum margin that users can reduce = Max (total equity of isolated positions - initial margin, 0)

Under cross-margin mode, traders cannot adjust the margin.

Will isolated long and short positions be liquidated?

Will! The profits and losses of isolated positions are not shared, and the margins are independent of each other and do not affect each other.

Can I switch between cross-margin and isolated-margin mode when holding a position?

Can't. The margin mode cannot be adjusted when holding a position or pending order in this contract.