Isolated vs Cross Margin in Crypto: Which Should You Use?
When you open a leveraged crypto position, most exchanges ask you to choose between isolated and cross margin. The choice decides how much of your account is exposed if the trade goes wrong.
Isolated margin
With isolated margin, you assign a specific amount of margin to a position. Only that amount can be lost.
- Liquidation happens when the position's own margin falls to the maintenance level.
- The rest of your account is unaffected.
- You can manually add margin to move the liquidation price away.
Run your own numbers with the free calculator: Position Size Calculator
Open calculator →Cross margin
With cross margin, your entire available balance in the futures account backs all open positions.
- A losing position can draw on your whole balance before being liquidated.
- The liquidation price is further away because more collateral supports it.
- Profits on one position can support losses on another.
Example
You have $10,000 in your futures account and open a $20,000 long BTC position at 10× leverage, so $2,000 is required margin.
Isolated: the $2,000 is at risk. If BTC falls about 9.5%, the position is liquidated and you lose roughly $2,000. Your other $8,000 stays safe.
Cross: the full $10,000 backs the position. BTC would need to fall roughly 50% before liquidation. But if it falls 40% and you have no stop, you lose about $8,000 — most of your account.
| Isolated | Cross | |
|---|---|---|
| Maximum loss on the trade | The assigned margin | Potentially the whole balance |
| Liquidation distance | Closer | Further |
| Effect on other positions | None | Shared collateral |
| Management | Per position | Account-wide |
When to use isolated margin
- Most single directional trades
- Learning to trade with leverage
- Speculative trades where you want a hard maximum loss
When cross margin can make sense
- Hedged positions, where gains on one side offset losses on the other
- Experienced traders who actively monitor risk and always use stops
- Strategies that require several related positions to share collateral
The real protection: stops and sizing
Cross margin's distant liquidation price can create a false sense of safety. Without a stop-loss, it simply lets a bad trade get much bigger. Whatever mode you use, size positions by risk and place stops before liquidation. See the 1% rule.
Calculate isolated liquidation
The position size calculator estimates the isolated-margin liquidation price for your leverage and maintenance margin rate, and warns you if your stop is beyond it.
CryptoMathly provides educational estimates only and is not financial, investment or tax advice. Crypto assets are volatile and you can lose money. Always verify figures with a qualified professional.