Cross Margin vs Isolated Margin

Cross-margin uses your entire account balance as collateral for all positions, maximizing capital efficiency.

How It Works

Your total account balance serves as collateral for all open positions, allowing you to:

• Share margin across all positions

• Maximize capital efficiency

• Offset losses with profits from other positions

Benefits

Capital Efficiency: Use your entire account balance for trading Risk Management: Profits in one position can offset losses in others Flexibility: Easy to manage multiple positions with shared margin Lower Requirements: Reduced total margin needed across portfolio

Cross-Margin vs Isolated Margin

Feature	Cross-Margin	Isolated Margin
Collateral	Shared across all positions	Separate for each position
Risk	Portfolio-wide	Individual position
Liquidation	All positions at risk	Only specific position
Capital Efficiency	High	Lower

Risk Management

Monitor Portfolio Risk: Track overall account exposure and position correlations Position Sizing: Limit individual position risk and avoid over-concentration Stop Losses: Use stop-losses for individual positions Diversification: Spread risk across different markets

Best Practices

• Set maximum position sizes

• Monitor portfolio risk regularly

• Diversify across uncorrelated markets

• Use proper position sizing methods

• Monitor total account equity

Next Steps

• How to Use Cross-Margin - Practical implementation

• Risk Management Guide - Protect your capital

• Multi-Collateral Trading - Asset diversification