Isolated mode and cross mode are two different margin modes, you can choose the leverage multiple and different margin modes on the trading page. The leverage multiple is related to the position margin of isolated mode and the initial margin of cross mode.
In the two-way position mode, you need to set the leverage multiple for long and short respectively.
In one-way position mode, you only need to set the leverage multiple once.
In the isolated mode, the position margin is a fixed value. The initial margin can be changed by adjusting the leverage, risk limit, etc. When the margin balance is lower than the maintenance margin, a liquidation is triggered. At this time, the amount of the position margin is the maximum loss that the user needs to bear.
The isolated position margin= Number of open positions * Average opening price/leverage multiple
If the position held by the user is liquidated due to price fluctuations, it will only lose the amount of margin held in that direction and will not affect other funds in the futures account.
In the Cross mode, all balances in the user’s futures account are used as a margin for the position. Users can set positions under multiple futures to the full position mode, and all positions set to the full position mode can share the account balance as margin. However, the unrealized profit and loss of the profitable position cannot be used as the margin for other positions.
Cross initial margin = number of open positions * average opening price/leverage multiple
Cross position margin = All balances of the futures account
Cross initial margin = 50000 * 0.1 * 25% = 200USDT
However, its cross-position margin is still 1000USDT
All available funds in the futures account are considered margin and will be liquidated when the loss of the position exceeds the account balance.
Isolated mode and cross mode are two margin modes, users can flexibly choose according to their own needs. The isolated position margin is a fixed value, users can better control the risk and margin. The cross position margin is all funds in the futures account, which can be simpler and easier to understand.
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