Why do other people lose just one position when they get liquidated, while your entire account gets wiped out?
The difference comes down to one setting before you open a position: margin mode.
By default, Binance Futures uses all the USDT in your account as shared margin. If one position gets liquidated, it could wipe out your entire account.
With isolated margin, each position has its own separate margin. If a position gets liquidated, you can lose at most the money in that position; your other funds are unaffected.
5 steps to switch (before opening a position):
1. Tap the bottom of the app → select USDⓈ-M, for example, the $BTC USDT perpetual contract.
2. Transfer funds first: move them from your Spot account to your USDⓈ-M Futures account.
3. Tap the margin mode in the top-left corner (it shows “Cross” by default).
4. Select Isolated → Confirm. Beginners are strongly advised to use isolated margin; it’s the first line of defense for your capital.
5. Then tap the leverage multiplier beside it. Beginners should start with low leverage; lower leverage makes it easier to hold onto a position.
Note: You can’t switch modes while you have open positions or orders. After opening a position with isolated margin, you can also add margin to it separately to move the liquidation price farther away.
My take: Many beginners get liquidated not because they lack trading skills, but because they don’t even know that cross margin is the default. High leverage combined with cross margin means one small wick could wipe you out. With futures, survive first and think about making money later. Use isolated margin, low leverage, and always set a stop-loss. Follow these three rules, and at least you won’t lose everything without knowing why. Isolated margin matters even more with highly volatile coins like $ETH .
I’ll keep sharing practical tutorials like this, so follow me to stay updated.
When you first traded futures, did you use isolated or cross margin?
Source: Compiled from publicly available futures tutorials.
For informational purposes only; this is not investment advice. Futures trading carries extremely high risk. Participate with caution.
The difference comes down to one setting before you open a position: margin mode.
By default, Binance Futures uses all the USDT in your account as shared margin. If one position gets liquidated, it could wipe out your entire account.
With isolated margin, each position has its own separate margin. If a position gets liquidated, you can lose at most the money in that position; your other funds are unaffected.
5 steps to switch (before opening a position):
1. Tap the bottom of the app → select USDⓈ-M, for example, the $BTC USDT perpetual contract.
2. Transfer funds first: move them from your Spot account to your USDⓈ-M Futures account.
3. Tap the margin mode in the top-left corner (it shows “Cross” by default).
4. Select Isolated → Confirm. Beginners are strongly advised to use isolated margin; it’s the first line of defense for your capital.
5. Then tap the leverage multiplier beside it. Beginners should start with low leverage; lower leverage makes it easier to hold onto a position.
Note: You can’t switch modes while you have open positions or orders. After opening a position with isolated margin, you can also add margin to it separately to move the liquidation price farther away.
My take: Many beginners get liquidated not because they lack trading skills, but because they don’t even know that cross margin is the default. High leverage combined with cross margin means one small wick could wipe you out. With futures, survive first and think about making money later. Use isolated margin, low leverage, and always set a stop-loss. Follow these three rules, and at least you won’t lose everything without knowing why. Isolated margin matters even more with highly volatile coins like $ETH .
I’ll keep sharing practical tutorials like this, so follow me to stay updated.
When you first traded futures, did you use isolated or cross margin?
Source: Compiled from publicly available futures tutorials.
For informational purposes only; this is not investment advice. Futures trading carries extremely high risk. Participate with caution.