I was asked: What exactly is the difference between isolated and cross margin?
I usually answer this way: On Binance USDⓈ-M contracts, you can’t switch margin modes when you have a position or open orders for the same trading pair. In cross margin, a large unrealized loss on one position can eat into the margin shared with other positions, reducing the safety buffer for all your cross-margin positions.
$BTC 68476 (-4.19%)
What do you think? Feel free to discuss in the comments.
Stay rational and don’t get carried away.
I usually answer this way: On Binance USDⓈ-M contracts, you can’t switch margin modes when you have a position or open orders for the same trading pair. In cross margin, a large unrealized loss on one position can eat into the margin shared with other positions, reducing the safety buffer for all your cross-margin positions.
$BTC 68476 (-4.19%)
What do you think? Feel free to discuss in the comments.
Stay rational and don’t get carried away.
