How Does Cross Margin Differ from Isolated Margin?
Isolated margin allocates a specific, limited amount of collateral to a single position, isolating the risk so that only that position's margin is at risk of liquidation. Cross margin uses the entire available balance in the trader's account as collateral for all open positions.
This spreads the risk but means a liquidation event can deplete the entire account balance, providing a larger buffer against liquidation for any single position.
