What Is the Concept of ‘Cross-Margin’ versus ‘Isolated Margin’?
Isolated margin is a risk management mode where only a specific, isolated amount of collateral is dedicated to a single trading position. If the position is liquidated, only the collateral allocated to that position is lost.
Cross-margin is a mode where the entire available balance in the trader's account is used as collateral for all open positions. This allows positions to share risk and potentially avoid liquidation longer, but a liquidation event risks losing the entire account balance.
