The isolated margin mode and cross margin mode are two essential margin management methods for crypto perpetual futures trading.

These modes differ significantly in terms of leverage, margin requirements, and risk exposure, affecting and shaping your trading strategies and risk management.

What is Isolated Margin Mode?

The isolated margin mode enables you to allocate a specified margin amount to each trading position, allowing you to isolate risks between trades.

A loss in one position only affects the margin assigned to that position, while other positions remain unaffected.

Additionally, you can manually adjust the margin (add or remove) for each position in this mode.

For example, let’s say you have 1,000 USDT in your futures account. You open a 10× leveraged position with a notional value of 1,000 USDT, which requires 100 USDT as margin. If this position gets liquidated, your maximum loss is 100 USDT, and the rest of your funds and positions remain safe.