What are the advantages of cross margin and isolated margin modes in multi-currency margin mode?

Published on Mar 20, 2023Updated on Feb 3, 20262 min read6

Accounts with assets of USD 50,000 or more can enable multi-currency margin mode. This mode supports spot, leverage, expiry futures, perpetual futures, and options.

In multi-currency margin mode, you can choose between isolated margin and cross margin. Each margin mode has its own advantages, depending on your trading strategy and risk preference.

1. What are the advantages of isolated margin in multi-currency margin mode?

Position-level risk isolation

In isolated margin mode, the margin and PnL of each position are calculated separately. Each position is independent, so losses from one position won’t affect other positions.

If liquidation occurs, only the margin allocated to that specific position will be lost, helping limit overall account risk.

Example:
If your account holds 10 BTC and 10 LTC, and you use 5 BTC to open a crypto-margined futures position under isolated margin, only those 5 BTC will be affected if liquidation happens. The remaining 5 BTC and 10 LTC won’t be impacted.

Isolated margin is suitable if you want clearer risk control and stronger position isolation.

2. What are the advantages of cross margin in multi-currency margin mode?

Shared margin and higher capital efficiency

In cross margin mode, all assets in your account are converted to USD value and pooled together as margin. All positions share the same margin pool, and profits and losses can offset each other.

This allows idle assets to be fully utilized and reduces the need for frequent margin adjustments.

Example:
If your account holds BTC, ETH, and OKB, and you trade BTC perpetual futures and ETH expiry futures under cross margin, the system uses the combined value of all assets as shared margin. Profits can be settled in real time and reused as margin, improving capital efficiency.

Cross margin is suitable if you want higher fund utilization and more flexibility.

Note:

  • In cross margin mode, extreme market conditions may cause losses in one position to affect the entire account, potentially resulting in a total loss of funds.

  • In isolated margin mode, each position is independent. Even in extreme market conditions, losses are limited to the margin of the affected position and won’t impact other assets or position.

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