Isolated margin
In isolated margin mode, each position has its own margin. If that position is liquidated, you lose only the margin assigned to it. The rest of your balance is untouched.
Cross margin
In cross margin mode, all your positions share your available balance as margin. A losing position can draw on your whole balance to avoid liquidation, so it survives larger moves. But if it is liquidated, the loss can be much larger, and in the worst case it takes your entire futures balance.
Side-by-side comparison
| Isolated | Cross | |
|---|---|---|
| Margin per position | Fixed, set by you | Shared balance |
| Maximum loss on one trade | That position’s margin | Up to the whole balance |
| Liquidation distance | Closer | Further (uses spare balance) |
| Profits from one position | Stay with that position | Support other positions |
| Best for | Single trades, beginners, defined risk | Hedged books, experienced traders |
A worked example
Example: you have $1,000 in your futures wallet and open a $2,000 long with $200 margin (10×). On isolated, the position is liquidated after roughly a 10% drop, and you lose $200 while $800 stays safe. On cross, the position can use the whole $1,000, so it survives a much larger drop of roughly 45–50%. If price keeps falling, though, you can lose most of the $1,000.
Which one should you use?
- Use isolated when you trade one idea at a time, are still learning, or want each trade’s worst case fixed in advance.
- Use cross when you run several positions that offset each other, such as a hedge, and you actively manage total account risk.
- In either mode, your stop-loss should be what ends a losing trade, not the liquidation engine.
Most exchanges let you set the mode per contract, and many require you to close a position before switching. Check the setting before every new trade.
Frequently asked questions
What is the difference between cross margin and isolated margin?
Isolated margin limits each position to its own margin, so a liquidation only loses that amount. Cross margin lets positions share your whole balance, which delays liquidation but can lose much more.
Is cross or isolated margin better for beginners?
Isolated margin, because the most a single trade can lose is the margin you assigned to it.
Can I lose my whole balance on cross margin?
Yes. On cross margin, a losing position can use your entire futures balance as margin, so if it is liquidated you can lose most or all of that balance.
Crypto futures are leveraged and carry a high risk of loss. This guide is educational and is not investment advice.