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Glossary Term

Isolated Margin

A mode that confines a position's risk to the margin assigned to it, protecting the rest of your account.

Isolated margin allocates a fixed amount of collateral to a single position; if that position is liquidated, only the assigned margin is lost and the rest of your account is untouched. It’s the disciplined choice for risky trades — you define your maximum loss upfront.

The trade-off versus cross margin: because only the isolated slice defends the position, it gets liquidated sooner on an adverse move. Isolated margin suits high-conviction, defined-risk bets and traders who want each position walled off; cross margin suits hedged books where balances should support each other. Choosing the wrong mode is a common way traders lose more than they intended.

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