L'INFORMATEUR CRYPTOHome › Glossary › Isolated margin and cross margin
Isolated margin and cross margin: definition
Isolated margin limits the risk to a single position's margin; cross margin uses the whole account balance as collateral.
Isolated margin
Each position has its own margin. If it gets liquidated, you only lose that margin, the rest of the account is protected. It's the clearest mode for beginners.
Cross margin
The whole available balance serves as collateral for all positions. The liquidation price is further away, but a single bad position can wipe out the whole account.
Which one to choose?
Isolated margin suits signal trading with a defined stop: each trade's risk is known in advance. Cross margin is mostly used for hedging strategies across several positions.
Frequently asked questions
Which margin does L'Informateur Crypto's track record use?
The estimated liquidation shown on the Positions page is calculated in isolated margin, at the call's leverage.