Isolated vs Cross Margin: Which Mode to Choose
Compare isolated and cross margin modes in crypto futures. Learn when to use each mode and how they affect your risk profile.
The choice between isolated and cross margin fundamentally affects how risk is distributed across your futures positions and directly impacts your liquidation price.
This section explains both margin modes in detail, how they interact with leverage, and guides you in choosing the right mode. Understanding margin modes is especially important when trading on Binance or Bybit.
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Frequently Asked Questions
What is the difference between isolated and cross margin?▾
In isolated margin, each position has its own dedicated margin that cannot be shared. If liquidated, only that position's margin is lost. In cross margin, all positions share the same margin pool — your entire available balance acts as collateral for all positions.
Which margin mode is safer for beginners?▾
Isolated margin is generally safer for beginners because it limits your maximum loss to the margin assigned to each position. Cross margin can lead to losing your entire account balance if one position goes heavily against you.
Can I switch between isolated and cross margin?▾
Yes, most exchanges allow switching margin modes, but only when you have no open positions in that trading pair. You cannot change the margin mode while a position is active — you need to close it first.
When should I use cross margin?▾
Cross margin is useful when running hedged positions (long on one asset, short on another) because gains from one position can offset losses on another. It is also preferred by experienced traders who manage portfolio-level risk rather than per-trade risk.