Futures & Derivatives

Margin explained

Margin – Cross and Isolated

Quick definition: Margin is the money you put up as collateral to open and hold a leveraged position. There are two main modes: cross margin and isolated margin.

Isolated margin: each position uses its own separate margin. If the position is liquidated, you only lose that amount; the rest of your wallet balance is unaffected.

Cross margin: your entire futures wallet balance is used to hold positions. Positions are harder to liquidate, but if a trade goes badly you could lose your whole account.

Beginners should use Isolated to clearly limit the risk of each position.

💡 Example

Your futures wallet has 1,000 USDT. Open an Isolated position with 100 USDT margin: if it gets liquidated, you only lose 100 USDT. Open it in Cross: the position can gradually "eat" the full 1,000 USDT before being liquidated.

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Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.