🛑💸 Ever wonder why your entire futures balance got wiped out from one bad trade? You probably used Cross Margin. Let me explain the difference between Isolated and Cross, because this mistake cost me a lot in my early days.
With **Isolated Margin**, you allocate a specific amount of your wallet balance to a single position. Let's say you have $1000 in your wallet and open a BTC long with $100 margin. If that trade goes south and gets liquidated, you only lose that $100. Your remaining $900 is safe and untouched. It's like putting a firewall around each trade.
Now, **Cross Margin** is a whole different beast. If you open that same BTC long with $100 margin in cross mode, your *entire* $1000 wallet balance acts as the margin for that position (and any other cross-margin positions). If BTC...
With **Isolated Margin**, you allocate a specific amount of your wallet balance to a single position. Let's say you have $1000 in your wallet and open a BTC long with $100 margin. If that trade goes south and gets liquidated, you only lose that $100. Your remaining $900 is safe and untouched. It's like putting a firewall around each trade.
Now, **Cross Margin** is a whole different beast. If you open that same BTC long with $100 margin in cross mode, your *entire* $1000 wallet balance acts as the margin for that position (and any other cross-margin positions). If BTC...