Cross vs isolated margin

Isolated margin

You assign a fixed amount of margin to one position. If the position is liquidated, the loss stops at that amount and the rest of your account is untouched. You can add margin to a position by hand to move its liquidation price further away.

The trade-off is that an isolated position is liquidated sooner than the same position on cross, because it cannot draw on anything else.

Cross margin

Your available balance backs every open position. Unrealised profit on one position can support a loss on another, and a position survives moves that would have liquidated it on isolated margin.

The trade-off is that the loss is not capped at one position’s margin. A large move against you can consume the whole balance, including money you did not intend to risk on that trade.

Which to use

A reasonable default is isolated margin until you have a specific reason for cross.

• Isolated: single directional trades, high leverage, or any trade where you want a hard cap on the loss.
• Cross: hedged books, where a long and a short offset each other and you want their margin shared.
• Either way, a stop-loss placed before the liquidation price is cheaper than a liquidation.

Portfolio margin

Some exchanges offer a third mode for larger accounts that sets margin from the risk of the whole portfolio, including options. It lowers requirements for hedged positions and raises complexity. Requirements and eligibility differ by exchange.

Where to go next

Common questions