Leverage, Margin & Liquidation · Lesson 2 of 3 · 5 min read

Cross vs Isolated Margin

Choose the right margin mode so one bad trade cannot take down your whole account.

Margin mode decides which money backs a position. It is one of the most important — and most overlooked — settings on the order form.

Isolated margin

Each position gets its own fixed pot of margin. If the trade goes badly, only that pot can be lost; the rest of your account is untouched. You can add margin to the position manually to push its liquidation price further away.

Cross margin

All cross positions share your account balance. Profits on one position support losses on another, and the whole balance stands between you and liquidation — so cross positions are liquidated later. The flip side: if things go wrong, the whole balance is at risk.

Example — $10,000 account, one $20,000 BTC long at $60,000
Isolated, $2,000 margin (10x)Liquidated near a 9% drop; max loss ≈ $2,000
Cross, whole account backing itSurvives a much larger drop; max loss ≈ $10,000

Isolated fails sooner but smaller. Cross fails later but can take everything.

Which to use

  • Isolated: speculative or high-leverage trades, small coins, anything where you want a hard cap on the loss.
  • Cross: hedged positions (e.g. long one coin, short another) or low-leverage trades where you want maximum breathing room.
  • Either way, a stop-loss is still your main defence — margin mode only decides what is at stake if you do not use one.

Key takeaways

  • Isolated: each position risks only its own margin.
  • Cross: positions share the account balance — later liquidation, bigger worst case.
  • Choose isolated when you want a hard cap on what one trade can lose.

Check your understanding

Question 1

1. In isolated mode, what is the most a position can lose?

Question 2

2. Why are cross positions usually liquidated later than isolated ones?

Question 3

3. You want to make a high-leverage bet on a small coin without risking the rest of your account. Which mode?

Educational content, not financial advice. Trading leveraged products and crypto assets carries a high risk of loss.