Margin. Liquidation. X's.

Let's take 2 orders for $BTC and consider their differences:

1. Long for $200 X5

2. Long for $500 X2

In both cases, we have a position for 1000 Usdt. Only in the first case, our margin is 10% and in the second, 50%. Accordingly, you can see a huge difference in the liquidation price. And the profit from the growth of two orders will be the same, but the risk is different.

In cross margin, your liquidation depends on the deposit of the futures wallet outside the position, and in isolated you can add margin to the position yourself. In isolated in an open position, you can only increase X, in cross and decrease it too. But this will not change the liquidation, this confuses many people. So X directly affects your liquidation. The examples in the pictures are taken from the simulator #Binance!