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Cross Margin Trading vs. Isolated Margin Trading

Updated
I. Cross Margin Mode
 
In Cross Margin Mode, all available funds in your futures account are used as shared collateral for all open positions. If the margin of any position drops to the maintenance margin level, the system will automatically use the available balance in the account to replenish the margin back to the initial level to avoid liquidation. If, after adding all available balance, the margin still falls below the maintenance margin, no further margin will be added, and the position will be liquidated.

 

II. Isolated Margin Mode
 
In Isolated Margin Mode, each position has its own margin, which is not shared with other positions. The system will not automatically add margin. You need to manually add the margin if the position’s margin drops. If the margin is not supplemented in time, there is a risk of forced liquidation.

 

III. Leverage Adjustment in Different Margin Modes
 
Cross Margin Mode is the default for opening new positions. Both Cross and Isolated Margin Modes allow for leverage adjustments. Please take note that adjusting the leverage will recalculate the margin requirements for the current positions, affecting the liquidation price.

 

Additional notes:
  1. You cannot switch between Cross and Isolated Margin modes or change leverage while there are active orders.
  2.  If you do not have enough margin to support an increased position, you cannot adjust the leverage.
  3. When raising the leverage, the adjusted leverage must not exceed the maximum leverage corresponding to the number of current positions.
 

Customer Support

If you have any questions regarding this information, please contact our team at support@Bittime.com or through the Bittime Help Center. The Bittime team is ready to assist you in ensuring you receive clear and accurate information.

 

Thank you for your trust and support. Together with Bittime, enjoy a better, safer, and more comfortable trading experience.

 

Learn More with Bittime:

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DISCLAIMER: This article is for informational purposes only and does not constitute advice, recommendation, offer, or solicitation to buy or sell any crypto assets. Trading crypto assets involves high risk. Crypto asset prices are volatile and can change significantly over time. Bittime is not responsible for fluctuations in exchange rates or crypto asset prices.

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