# What Is the Difference between Cross-Margin and Isolated-Margin Liquidation? ⎊ Path

**Published:** 2025-12-05
**Author:** Greeks.live
**Categories:** Path

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## What Is the Difference between Cross-Margin and Isolated-Margin Liquidation?

Isolated margin dedicates a specific, limited amount of collateral to a single position, so liquidation only affects that position's collateral. Cross margin uses the entire account balance as collateral for all positions.

Cross-margin offers a lower liquidation risk for a single trade but makes the entire account vulnerable to a total liquidation in a cascading market event.

- [How Does a Cross-Margin Account Differ from an Isolated-Margin Account?](https://learn.greeks.live/path/how-does-a-cross-margin-account-differ-from-an-isolated-margin-account/)

- [How Does ‘Margin’ Requirement Differ between an Isolated Margin and a Cross Margin Account?](https://learn.greeks.live/path/how-does-margin-requirement-differ-between-an-isolated-margin-and-a-cross-margin-account/)

- [Explain the Difference between Cross-Margin and Isolated-Margin and Its Impact on Liquidation Cascades](https://learn.greeks.live/path/explain-the-difference-between-cross-margin-and-isolated-margin-and-its-impact-on-liquidation-cascades/)

- [What Is Cross Margin and Isolated Margin in Crypto Futures?](https://learn.greeks.live/path/what-is-cross-margin-and-isolated-margin-in-crypto-futures/)

- [What Is ‘Cross Margin’ versus ‘Isolated Margin’?](https://learn.greeks.live/path/what-is-cross-margin-versus-isolated-margin/)

- [Explain the Difference between ‘Isolated Margin’ and ‘Cross Margin’](https://learn.greeks.live/path/explain-the-difference-between-isolated-margin-and-cross-margin/)

- [How Does “Cross-Margin” Differ from “Isolated Margin” in a CEX?](https://learn.greeks.live/path/how-does-cross-margin-differ-from-isolated-margin-in-a-cex/)

- [How Does a Cross-Margined Futures Account Differ from an Isolated-Margined Account in Terms of Oracle Risk?](https://learn.greeks.live/path/how-does-a-cross-margined-futures-account-differ-from-an-isolated-margined-account-in-terms-of-oracle-risk/)

## Glossar

### [Using Isolated Margin](https://learn.greeks.live/area/using-isolated-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Strategy ⎊ Using Isolated Margin is a deliberate risk management strategy where a trader explicitly designates a specific, finite amount of capital as collateral for an individual leveraged position.

## Discover More

### [How Can a Trader Adjust the Margin for an Isolated-Margin Position?](https://learn.greeks.live/path/how-can-a-trader-adjust-the-margin-for-an-isolated-margin-position/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can a Trader Adjust the Margin for an Isolated-Margin Position?](https://learn.greeks.live/wp-content/uploads/2025/10/Cross-Sectional-Examination-of-Mechanism-Governing-Decentralized-Autonomous-Organization-Governance-Protocol-Execution.webp)

Margin can be manually added to or removed from an isolated position to adjust the liquidation price.

### [What Is the Formulaic Relationship between Margin and Liquidation Price?](https://learn.greeks.live/path/what-is-the-formulaic-relationship-between-margin-and-liquidation-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Formulaic Relationship between Margin and Liquidation Price?](https://learn.greeks.live/wp-content/uploads/2025/10/Layered-Precision-Mechanism-Simulating-Decentralized-Autonomous-Organization-Governance-Token-Staking-Apparatus.webp)

Liquidation Price is the point where equity equals maintenance margin; increasing initial margin moves the liquidation price further away from the entry price.

### [What Is the Difference between Initial Margin and Variation Margin (Maintenance Margin)?](https://learn.greeks.live/path/what-is-the-difference-between-initial-margin-and-variation-margin-maintenance-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Initial Margin and Variation Margin (Maintenance Margin)?](https://learn.greeks.live/wp-content/uploads/2025/10/Deep-Dive-Visualization-of-Interlayer-Material-Stratification-in-Volatility-Surface-Modeling.webp)

Initial margin is the upfront performance bond; variation margin is the daily adjustment to cover realized losses from price movements.

### [How Does the Margin Maintenance Requirement Relate to the Risk in Cross Margin?](https://learn.greeks.live/path/how-does-the-margin-maintenance-requirement-relate-to-the-risk-in-cross-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Margin Maintenance Requirement Relate to the Risk in Cross Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Reflective-Substrate-Interaction-with-Magnetic-Coil-Assembly-Simulating-Decentralized-Exchange-Liquidity-Pools.webp)

It applies to the entire account equity, increasing the risk of full account liquidation from a single bad trade.

### [What Is the Distinction between Isolated Margin and Cross Margin?](https://learn.greeks.live/path/what-is-the-distinction-between-isolated-margin-and-cross-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Distinction between Isolated Margin and Cross Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Machining-of-Decentralized-Exchange-Automated-Market-Maker-Mechanism-Interface-Geometry.webp)

Isolated margin limits risk to a single position's collateral; cross margin uses the entire account balance as shared collateral.

### [How Does the Concept of "Stop-Loss" Compare to the Risk-Limiting Feature of Isolated Margin?](https://learn.greeks.live/path/how-does-the-concept-of-stop-loss-compare-to-the-risk-limiting-feature-of-isolated-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Concept of "Stop-Loss" Compare to the Risk-Limiting Feature of Isolated Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Machined-Propeller-Hub-Mechanism-Exemplifying-Decentralized-Finance-Protocol-Kinetic-Energy-Transformation.webp)

Isolated margin is a structural loss cap; a stop-loss is a customizable, proactive execution strategy.

### [What Is the Difference between an Atomic Swap and a Cross-Chain Bridge?](https://learn.greeks.live/path/what-is-the-difference-between-an-atomic-swap-and-a-cross-chain-bridge/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between an Atomic Swap and a Cross-Chain Bridge?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Optical-Assembly-Modeling-Decentralized-Finance-Protocol-Lens-Functionality-Convergence.webp)

Atomic swaps are direct, trustless P2P exchanges; cross-chain bridges use intermediaries (validators/custodians) to mint wrapped tokens.

### [What Is the Difference between Portfolio Margin and Cross Margin?](https://learn.greeks.live/path/what-is-the-difference-between-portfolio-margin-and-cross-margin/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Portfolio Margin and Cross Margin?](https://learn.greeks.live/wp-content/uploads/2025/10/Two-Planar-Blades-Intersecting-Supporting-Spherical-Assets-Across-Volatility-Surfaces.webp)

Cross pools collateral in one account; Portfolio calculates margin based on the net risk of all positions and assets.

### [What Is the Difference between Isolated and Cross Margin in Crypto Futures?](https://learn.greeks.live/path/what-is-the-difference-between-isolated-and-cross-margin-in-crypto-futures/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Isolated and Cross Margin in Crypto Futures?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Exchange-Liquidity-Pool-Split-Illustrating-Bifurcated-Asset-Pricing-Mechanisms.webp)

Isolated margin limits risk to a single position's collateral; Cross margin uses the entire account balance as shared collateral.

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**Original URL:** https://learn.greeks.live/learn/what-is-the-difference-between-cross-margin-and-isolated-margin-liquidation/
