Explain the Difference between ‘Isolated Margin’ and ‘Cross Margin’.
Isolated margin is a margin mode where the collateral allocated to a specific position is restricted to that position alone. If the position is liquidated, only the margin allocated to it is lost.
Cross margin, conversely, uses the entire available balance in the margin account to support all open positions. While cross margin can prevent a single position from being liquidated early, a large loss on one position can potentially liquidate the entire account balance, spreading the risk across all assets.
