Understanding Cross and Isolated Margin Differences

When it comes to leverage trading in crypto, there are two types of margin: cross margin and isolated margin. Cross margin shares margin across all your positions, boosting capital efficiency but exposing your entire account to liquidation if one trade fails. Isolated margin, on the other hand, limits risk to individual positions, giving you more control but requiring more margin management. Cross margin is popular with experienced traders managing multiple positions, while isolated margin is favored by those handling high-leverage trades or managing risk for multiple strategies. The choice between the two depends on your trading style, risk tolerance, and capital allocation strategy.

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