What Is the Difference between a ‘Cross Margin’ and an ‘Isolated Margin’ Account?

In an isolated margin account, the margin allocated to a specific position is separate from the rest of the account balance. If the position is liquidated, only that margin is lost.

In a cross margin account, the entire account balance is used as collateral for all open positions. This reduces the chance of liquidation for a single position but risks the entire account balance if multiple positions move adversely.