Cross Margin
Margin mode where all account balance and unrealized profits/losses are shared as collateral across all open positions.
✦ Key Insight
Why It Matters: Profits from winning trades can offset losses in others, reducing liquidation probability. Suited for portfolio hedging but riskier overall. How It Works: Entire futures wallet acts as one pool. Liquidation occurs only if total margin falls below requirements. Common Mistakes: O
✕ Common Misconceptions
It is often mistaken for similar sounding terms, but the technical implementation is distinct.
Detailed Explanation
In Practice
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Isolated Margin
Isolated margin is a margin mode where a specific amount of collateral is assigned to one leveraged position and the risk is largely separated from the rest of the trading account.
Auto-Deleveraging (ADL)
A risk-control mechanism on futures exchanges where highly profitable leveraged positions are forcibly reduced/closed to cover losses of bankrupt positions.