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What Are Isolated and Cross Margin Modes in USDⓈ-M Futures Grid Trading?

2023-11-23 13:48
Margin Modes Overview
Frequently Asked Questions

Binance Futures grid trading bots offer the ability to control margin, which allows for precise risk management and capital allocation to individual positions or strategies. You can use the Cross Margin and Isolated Margin modes to spread risk across multiple positions or isolate and manage it individually.

What are the Cross Margin and Isolated Margin modes?

Cross Margin mode

In the Cross Margin mode, all positions share the same margin balance. It is ideal for users who prefer all their positions to share a single margin balance. Please note that you cannot create multiple grid bots on the same symbol in the Cross Margin mode.

Limitations:

  • You cannot create more than one grid bot per symbol. If one bot faces liquidation, all positions sharing the margin balance will be closed.
  • Margin adjustments are global for your entire portfolio of strategies under the Cross Margin mode. You cannot individually adjust the margin for a specific Isolated grid strategy.
  • You can operate up to 50 active grid bots at the same time.

Isolated Margin mode

Each position has its own dedicated margin in the Isolated Margin mode, which reduces the risk of liquidation impacting other positions. Isolated Margin mode suits users who want to limit risk by assigning specific margin to each position.

  • You can operate up to four grid bots in the Isolated Margin mode simultaneously, regardless of whether the symbol is already being operated on by another grid bot. It caters to advanced trading strategies while isolating the risks to each bot.
  • Margin adjustments are specific to each isolated grid strategy, offering more control and granularity.
  • You can also adjust the leverage for each position in Isolated Margin mode.

How to switch between the margin modes when setting up your Futures grid bot?

Selecting a suitable margin mode is crucial for managing risk and investment strategy. Let’s see how to select a margin mode on the Binance website.

1. Log in to your Binance website and go to [Trade] - [Trading Bots]. Select [Futures Grid] and a symbol to trade.

2. Enter the price range, number of grids, and investment margin.

3. Expand the [Advanced (Optional)] section and click [Cross].

4. Choose [Cross] or [Isolated]. Please note that this setting will be shared across all symbols.

How to add or remove margin?

You can add or remove margin to/from any of the wallets.

1. Go to [Running] on the trading interface. Under [Initial Margin], click the [+] icon next to the margin you want to adjust.

You may also adjust the margin for a given strategy via the details page. Click the [+] button next to [Margin Balance].

2. Go to the [Add Margin] or [Remove Margin] tab.

  • From and To: Select the wallets. For example, to add margin, transfer from [Spot] to [Trading Bots - BTCUSDT Perp Isolated]. To remove, transfer from [Trading Bots - BTCUSDT Perp Isolated] to [USDⓈ-M Futures].
  • Amount: Enter the amount of USDT you wish to add or remove. You can see the maximum available amount below.
  • Maintenance Margin and Ratio Changes: You can review the changes in Maintenance Margin and Margin Ratio that will occur after the adjustment.

3. Double-check the margin balance change and the new Margin Ratio. Please note that adjusting the margin will affect the liquidation price, but not the quantity of your grid.

How to differentiate the Cross and Isolated Margin modes in the Trading Bots Wallet?

The Trading Bots Wallet provides a comprehensive breakdown of your total margin balance, categorizing the funds between Cross and Isolated Margin strategies. This distinction allows you to quickly assess the capital allocated to each trading strategy and understand how your margin is being utilized across different trading bots.

Please note that the traded products allocation chart (Spot, USDⓈ-M, COIN-M) will prioritize displaying bots under the Cross Margin mode, unless specified otherwise.

For more details, please visit How to Check Your Trading Bots Wallet Balance: A Step-by-Step Guide.

How to customize the chart display for multiple grid bots?

When managing multiple grid bots of the same symbol, it is important to have a clear and customizable view of each bot's activity. Binance's interface allows you to personalize your dashboard by selectively displaying open orders, positions, and order history for each strategy.

To configure which details you see in the running grid list:

1. Hover your mouse over the display settings icon under the [Action] column.

2. Toggle on the button next to the elements you wish to display on the chart. This can include open orders, current positions, and a log of past orders.

While multiple grid bots can operate on the same symbol, only one chart can be viewed at a time. You can use the chart display settings to toggle between different grid bot displays, ensuring you have the data needed to make informed trading decisions.

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