When operating a perpetual futures to open a position, the choice of margin mode is crucial. In simple terms, let’s quickly understand the two common margin modes.
Types of Margin Modes
Cross Margin
- All funds in the futures account are shared across every open position.
- If one position is liquidated, it can draw margin from the entire account balance.
- This increases overall flexibility but also means that a single bad trade could affect all other positions.
Isolated Margin
- Each trading pair has its own separate margin allocation.
- Liquidation in one position does not affect other positions or account assets.
- Losses are strictly limited to the margin assigned to that individual position.
How to Choose the Right Mode
You can think of the two modes like this:
- Cross Margin = “Putting all your eggs in one basket.” Best for experienced traders who want maximum flexibility and are confident in their risk management.
- Isolated Margin = “Dividing eggs into multiple baskets.” Best for beginners or conservative traders, since losses are limited to one position and risks are easier to control.
How to Switch Margin Mode When Opening a Position
1、Open Bitunix.com and log in. Click Futures > USDT Perp Futures to enter the USDT-margined perpetual contract trading page.
2、On the trading page, click Cross/Isolated on the right-hand side to switch the margin mode.
App Demo:
1、Download and log in to the Bitunix App. Enter the futures trading page, select the trading pair, and click [Margin Mode] to switch the positioning mode.
2、In the pop-up window, you can choose between Cross and Isolated margin modes.
- Cross Margin Mode: All available assets in your Futures account are used as margin, and positions will be liquidated together when losses exceed the account balance.
- Isolated Margin Mode: Each position has independent margin and risk. Losses are limited to the margin allocated to that position.
3、After selecting your preferred margin mode, click Confirm to apply the setting.
Disclaimer
This article does not constitute and is not intended to provide:
- Investment advice or investment recommendations;
- An offer or solicitation to buy, sell, or hold digital assets;
- Financial, accounting, legal, or tax advice.
- Digital assets, including stablecoins and NFTs, involve high risks and can fluctuate significantly in value. You should carefully consider whether trading or holding digital assets is appropriate for your financial situation. Please consult your legal, tax, or investment professional for specific guidance.
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