What Is ‘Cross Margin’ versus ‘Isolated Margin’?
Isolated Margin is a risk management mode where the margin assigned to a specific position is isolated from the rest of the account balance. If the position is liquidated, only the margin allocated to that position is lost.
Cross Margin, conversely, uses the entire account balance as collateral for all open positions. While Cross Margin reduces the chance of liquidation for any single position, a liquidation event can wipe out the entire account balance.
