Cross vs. Isolated Margin: How to Choose
Understand the difference between cross and isolated margin modes and when to use each for futures trading.
Isolated margin ring-fences a position: it can lose what you assigned it and no more. Cross margin backs positions with the whole futures wallet, which delays liquidation but puts every balance in that wallet behind the trade. The choice is about which failure you prefer, and it should be made before the position is open.
Before you start
- No open position on the contract you are switching — the mode is set per contract and changing it with a position open is restricted.
- A clear answer to how much you are prepared to lose on this specific trade.
Open Margin Mode Settings
On the Futures trading screen, tap the margin mode indicator next to the leverage display. You will see two options: Cross Margin and Isolated Margin. The setting applies per trading pair.
Understand Cross Margin
In Cross Margin mode, your entire Futures wallet balance is shared as margin across all open positions. If one position starts losing, it can draw on your remaining balance to avoid liquidation. This gives positions more room but means a single bad trade could deplete your entire futures balance.
Understand Isolated Margin
In Isolated Margin mode, each position has a fixed amount of margin allocated to it. If the position gets liquidated, you only lose the margin assigned to that position, not your entire futures balance. This limits your maximum loss per trade to the isolated margin amount.
Choose the Right Mode
Use Isolated Margin when you want to strictly limit risk on individual positions, especially when trying higher leverage or trading volatile pairs. Use Cross Margin when you want to reduce the chance of liquidation on well-researched positions by allowing them to access your full balance.
Switch Between Modes
You can switch margin modes at any time when you have no open positions on that pair. If you have an open position, close it first before changing the mode. Your choice is saved per pair, so you can run different modes on different contracts simultaneously.
Risk Disclaimer
Futures trading involves significant risk. Leveraged positions can result in losses exceeding your initial investment. Past performance does not guarantee future results. Only trade with funds you can afford to lose. This tutorial is for educational purposes only and does not constitute financial advice.
If something goes wrong
- The mode cannot be switched.
- There is an open position or a resting order on that contract. Close or cancel first, then switch.
- A cross-margin loss touched a balance you were not thinking about.
- That is cross margin working as designed. Isolated is the mode that prevents it, at the cost of liquidating sooner.
Frequently asked questions
- Which mode is safer?
- Isolated caps the loss per position. Cross survives a swing longer but risks the whole wallet. Neither removes risk.
- Can different contracts use different modes?
- Yes, the setting is per contract, so a long-term position can be isolated while another runs on cross.
- Does the mode change the liquidation price?
- Yes. Cross margin draws on the wider balance, so liquidation sits further away — and takes more with it if it happens.