Many people overlook the isolated margin / cross margin option before opening a contract.
This is how I understand it: the difference between the two is whether risk is kept separate or shared. Isolated margin confines risk to a single position, while cross margin lets all positions share one balance.
In cross margin mode, the entire balance of the same margin asset in your account backs your cross-margin positions, and unrealized losses can draw on your entire account balance.
My habit now: before placing an order, I check the margin mode for the trading pair, so I don't find out it's cross margin only when I'm liquidated.
The coin mentioned above: $BTC is quoted at 83258.7 (24h -0.31%).
#BTC
This is how I understand it: the difference between the two is whether risk is kept separate or shared. Isolated margin confines risk to a single position, while cross margin lets all positions share one balance.
In cross margin mode, the entire balance of the same margin asset in your account backs your cross-margin positions, and unrealized losses can draw on your entire account balance.
My habit now: before placing an order, I check the margin mode for the trading pair, so I don't find out it's cross margin only when I'm liquidated.
The coin mentioned above: $BTC is quoted at 83258.7 (24h -0.31%).
#BTC