What is Cross Margin Mode?
In Cross Margin Mode, all positions under the same margin asset share a common margin balance. If liquidation is triggered, the maximum loss is limited to the total margin balance and position value under that asset.
Cross Margin Mode offers the following advantages:
Shared Margin
Margin is shared across positions, allowing for more flexible allocation and helping reduce liquidation risk during market fluctuations.
Capital Efficiency
By sharing margin, capital utilization is improved and the need to add additional margin is reduced.
Risk Diversification
Losses from one position can be offset by profits from other positions, helping to diversify overall risk.
What is Isolated Margin Mode?
In Isolated Margin Mode (also referred to as “separate margin” by some users), the margin for each position is calculated independently and managed separately.
Under Isolated Margin Mode, the maintenance margin ratio is calculated independently for each position. If the ratio falls below 100%, the position will trigger forced position reduction or liquidation. The maximum loss is limited to the margin allocated to that specific position.
Isolated Margin Mode offers the following advantages:
Risk Control
Losses are limited to the isolated position and will not affect other positions.
Position Management
Traders can manage each position independently with greater precision.
Custom Margin Allocation
Traders can allocate specific amounts of margin to different positions based on their risk tolerance.