How Does a Cross-Margin Account Affect the Liquidation Price of a Single Position?
In a cross-margin account, the liquidation price of a single position is less sensitive to small adverse movements because the entire account balance acts as shared collateral. The liquidation price will be closer to the bankruptcy price than in an isolated margin account.
However, if the entire account is used, the liquidation of one position can be triggered by losses in another position, and the liquidation of the first position could then cause the entire account to be liquidated if the overall equity drops below the maintenance level.
