b9_1155what is isolated vs cross margin?
two ways an exchange decides how much of your money backs a leveraged position.
with isolated margin only the margin assigned to that position is at risk. with cross margin the whole account balance can be used, so one bad position can drain everything.
related words
- liquidation the exchange force-closing a leveraged position when its margin falls below the required minimum.
- mark price a "fair" price, mostly based on an index of spot prices, that many exchanges use to trigger liquidations.
- margin the money posted to open and hold a leveraged position.
part of the topic risk: free articles, more words and the guide.
checked . education, not advice. found a mistake? see corrections.