What Is “Cross Margin” versus “Isolated Margin”?

Isolated margin means the margin allocated to a specific position is restricted to that position only. If the position is liquidated, only the margin for that trade is lost.

Cross margin uses the entire available balance in the futures account as collateral for all open positions. This reduces the chance of liquidation for a single trade but puts the entire account balance at risk.

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Define ‘Cross Margin’ versus ‘Isolated Margin’ in Futures Trading

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