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What is Cross Margin?

A margin mode where your entire account balance is shared as collateral across all open positions — improving liquidation resistance but increasing interconnected risk.

In cross margin mode, your full available balance acts as collateral for all open positions simultaneously. This gives each position more buffer against liquidation — but it also means one large losing position can drain margin from all your others.

How it differs from isolated margin:

FeatureIsolatedCross
Collateral per tradeFixed allocationFull account balance
Max loss on one tradeAllocated margin onlyEntire account balance
Liquidation resistanceLowerHigher
Risk containmentPer-tradeAccount-wide

When cross margin makes sense:

  • Hedged positions (long and short simultaneously) — cross margin prevents both sides from independently liquidating
  • Traders with highly correlated positions who want shared margin efficiency
  • Professionals who actively manage margin across multiple positions
  • The risk: One catastrophic losing trade in cross margin can trigger a cascade — its losses drain the margin protecting other positions, which then liquidate too. This is how traders lose entire accounts in a single session.

    Recommendation: Use isolated margin by default. Reserve cross margin for specific hedging strategies once you understand the mechanics.

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