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What are Isolated margin and Cross margin in cryptocurrency trading?
Summary
Isolated margin and cross margin are two different types of margins available on many cryptocurrency trading platforms.
In isolated margin, investors decide how much funds to allocate as collateral for a specific position, and the rest of the account balances are not affected by this operation.
Cross margin uses all available funds in your account as collateral for all trades. If you have a losing position, but have another that is winning, the profit can be used to cover the loss, allowing you to keep your position open longer.
Isolated margin and cross margin are two different types of margins available on many cryptocurrency trading platforms.
In isolated margin, investors decide how much funds to allocate as collateral for a specific position, and the rest of the account balances are not affected by this operation.
Cross margin uses all available funds in your account as collateral for all trades. If you have a losing position, but have another that is winning, the profit can be used to cover the loss, allowing you to keep your position open longer.
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