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Cross margin vs isolated margin?

Updated over 2 months ago

Margin defines which funds back your position.

Isolated margin

• Only the margin assigned to that position is at risk.

• If it runs out, the position is liquidated.

• The rest of your balance is not affected.

• Recommended for beginners.

Cross margin

• Uses the entire available balance as backing.

• Reduces the probability of early liquidation.

• Increases the risk of losing more funds.

• Recommended for experienced traders.

Choosing the type of margin is a key decision in risk management.

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