Isolated margin

Isolated margin is a margin mode where each position is backed by a fixed amount of collateral that you manually assign. If the position is liquidated, you lose only that allocated margin — the rest of your account balance is untouched.

This is the key distinction from cross margin: in isolated mode the exchange cannot pull additional funds from your wallet to keep the position alive. The maximum loss is strictly bounded by the margin you isolated.

Example: your account holds $2,000. You open a BTC long and assign $200 as isolated margin at 10x leverage (notional = $2,000). BTC drops sharply and the position is liquidated. You lose $200 — your remaining $1,800 is safe.

The trade-off is that isolated positions liquidate more readily because they have a smaller absolute buffer. Traders use isolated margin when they want to size a speculative trade precisely without risking their full balance, or when running multiple concurrent positions each with its own risk budget.

To see exactly where liquidation falls given your assigned margin, try the liquidation calculator. Research output only — not investment advice.