Cross margin

Cross margin (also called portfolio margin on some exchanges) is a mode where all open positions share the entire available account balance as collateral. Unrealized profits from one position can automatically offset losses in another, and the exchange draws on the full balance before liquidating any single position.

This contrasts with isolated margin, where each position has a fixed, ring-fenced allocation.

Example: your account holds $3,000. You have a BTC long losing $800 and an ETH short gaining $600. In cross margin the net margin used is $200, so liquidation is still far off. In isolated mode each position would be evaluated against only its own assigned margin, potentially liquidating the BTC long independently.

The main advantage of cross margin is the lower likelihood of liquidation during volatile swings — the buffer is always as large as your total equity. The main risk is the opposite: a single large adverse move can drain your entire balance before the exchange closes the position, leaving nothing behind.

Cross margin suits traders who run correlated or hedged books where positions partially offset each other. For outright directional bets, isolated margin gives cleaner loss control. Use the liquidation calculator to compare liquidation prices under each mode. Research output only — not investment advice.