How Does Cross Margin Differ from Isolated Margin in a Liquidation Scenario?
With isolated margin, only the margin specifically allocated to that single position is at risk of liquidation. If liquidated, only that margin is lost.
With cross margin, the entire available balance in the trader's account is used as collateral for all open positions. In a liquidation scenario, cross margin will draw from the entire account balance to prevent liquidation, putting the whole portfolio at risk, but making liquidation less likely.
