Glossary - ChicksX

Isolated Margin is a risk management feature in trading, limiting potential losses to a specific position's allocated margin.

Isolated Margin is a trading feature that lets you allocate a specific amount of margin to a single trading position. Unlike Cross Margin, where the entire margin balance may be at risk, Isolated Margin limits potential losses to the amount allocated for that specific position. This allows traders to manage risk more effectively. If a position's margin is depleted, only that position is liquidated, protecting other investments in your account. It's particularly useful in volatile markets like crypto, enabling strategic risk management without affecting the overall account balance. Traders can better control their exposure and protect investments.