Cross margin and isolated margin

1. Isolated margin keeps the risk in one position

In isolated mode, only the margin assigned to that position backs it. If it is liquidated, the loss is limited to that assigned margin. Other contract balances are not used for that position.

It is often used for short-term leveraged trades and for higher-volatility altcoin contracts.

2. Cross margin shares the available balance

In cross mode, available contract balance backs open positions together. Unrealized profit on one position can support another, which can prevent a liquidation from a brief wick.

The other side is account-wide: if a large move consumes the shared margin, the contract account’s available balance can be liquidated together.

It is often used for hedges and for lower-leverage trend positions in major assets.

3. A practical margin note

If you are new to contracts, isolated margin is the clearer default. Keep the risk of one trade to a small share of the account, often a few percent. If you use cross margin, move profits you want to keep out to spot or to a separate wallet. That transfer is what isolates them.