Glossary
What is Isolated vs cross margin
Isolated — only the position's own collateral backs it, and that is what liquidation takes. Cross — the position draws on the whole free balance, and liquidation can take more.
How it works
Example
A $10,000 balance, a cross-margin position with no stop: in a big adverse move the whole balance is at stake, not just $3,403 of margin.
Common mistake
Running cross margin and "forgetting" the stop.
Read next
Related terms
Frequently asked questions
- Where can I learn Isolated vs cross margin step by step?
- In the Trading OS Academy: “Leverage is sizing, not greed”.
- What is Isolated vs cross margin related to?
- Margin; Liquidation; Leverage.
Plan versus outcome — for every trade
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