Cross margin or isolated margin: which one should you be using when trading the futures market?

In this class, we will look at both cross and isolated margin. The disadvantages and advantages of each trading mode, knowing which trading mode can have a significant impact on how your trading account performs overtime as one mode can completely wipe out your entire trading account yet the other mode can help protect your trading account by keeping the risk associated to a specific margin

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What is the Isolated Margin mode?

The isolated margin mode indicates that the selected margin is isolated from the trader's account balance. This mode allows traders to manage their risks accordingly as the maximum amount a trader would lose from liquidation is limited to the position margin placed for that open position

Cross margin mode means that the open trades will use all the available balance on your account, if your open trade goes against you the entire account balance can be used to maintain the opened trades

The risk is that in case of liquidation the trader will lose everything on their account


You can find all the episodes of the course on this playlist
The Ultimate Crypto futures Trading Course for Beginners
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Time stamps
0:00 Intro
00:38 isolated or cross margin what's the difference
04:56 cross margin vs isolated and maintenance margin
06:52 advantages and disadvantages of the cross and isolated margin
09:00 next class introduction to candle sticks

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