Glossary: isolated vs cross margin đ
Isolated margin: only the margin you put on that one position is at risk. If it gets liquidated, the rest of your balance stays untouched.
Cross margin: your whole futures balance backs every open position. A losing trade can pull from the free balance to stay alive longer, but one bad move can drain the entire account.
Quick rule I use:
đč Testing a new setup or a high-leverage idea? Isolated.
đč Hedged positions that offset each other? Cross can make sense.
A lot of wiped accounts are cross margin with no stop loss.
Which one do you trade on? đ
#FuturesTrading #crypto #tradingtips #Binance
Isolated margin: only the margin you put on that one position is at risk. If it gets liquidated, the rest of your balance stays untouched.
Cross margin: your whole futures balance backs every open position. A losing trade can pull from the free balance to stay alive longer, but one bad move can drain the entire account.
Quick rule I use:
đč Testing a new setup or a high-leverage idea? Isolated.
đč Hedged positions that offset each other? Cross can make sense.
A lot of wiped accounts are cross margin with no stop loss.
Which one do you trade on? đ
#FuturesTrading #crypto #tradingtips #Binance