What Is Cross-Margin versus Isolated Margin?
Isolated margin dedicates a specific, limited amount of collateral to a single position, isolating the risk; if the position is liquidated, only that margin is lost. Cross-margin uses the entire available balance in the trading account as collateral for all open positions.
This spreads the risk but also means a single losing position can deplete the entire account balance, increasing the risk of full liquidation.
