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IsolatedMargin

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Since17
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Bullish
In case of cross futures trading, liquidation can also wash funds from the spot and earn balance as well? In *cross-margin futures trading*, liquidation can indeed have an impact on both your *futures margin* and *spot account*. Here's a breakdown of how it works: *Cross Margining in Futures Trading:* In *cross-margin* mode, your *entire account balance* across both *spot and futures* is used as collateral for futures positions. This means that your *spot assets* (like USDT, Bitcoin, or any other tokens you hold) are not separate from your *futures positions* in terms of margin. Instead, all funds in your account, whether in spot or futures, are considered when calculating margin requirements. *How Liquidation Works in Cross Margin:* - When you trade *futures* in cross-margin mode, if your position starts to lose value and the *maintenance margin* requirement is breached, *liquidation* can occur. - The liquidation happens when your margin balance is no longer enough to cover the losses in the position, and it needs to be closed to prevent further losses. *Impact on Spot Account during Liquidation:* - *Spot Funds at Risk*: In cross-margin mode, if your *futures position* is losing money and reaches the liquidation point, *your spot funds* can be used to cover the losses. This means that the funds from your *spot wallet* can be automatically used to fulfill margin requirements to prevent liquidation. - *Liquidation of Futures Position*: If you are liquidated on a *futures position*, it is essentially a forced close of that position to ensure that you don’t owe more than what you can cover with your available funds. - *Loss of Spot Funds*: If you don't have enough margin in your *futures wallet* to cover the losses, the funds from your *spot wallet* will be used to cover the deficit. This can result in a loss of funds from your *spot wallet*. #Crossmargin #cross #IsolatedMargin
In case of cross futures trading, liquidation can also wash funds from the spot and earn balance as well?

In *cross-margin futures trading*, liquidation can indeed have an impact on both your *futures margin* and *spot account*. Here's a breakdown of how it works:

*Cross Margining in Futures Trading:*
In *cross-margin* mode, your *entire account balance* across both *spot and futures* is used as collateral for futures positions. This means that your *spot assets* (like USDT, Bitcoin, or any other tokens you hold) are not separate from your *futures positions* in terms of margin. Instead, all funds in your account, whether in spot or futures, are considered when calculating margin requirements.

*How Liquidation Works in Cross Margin:*
- When you trade *futures* in cross-margin mode, if your position starts to lose value and the *maintenance margin* requirement is breached, *liquidation* can occur.
- The liquidation happens when your margin balance is no longer enough to cover the losses in the position, and it needs to be closed to prevent further losses.

*Impact on Spot Account during Liquidation:*
- *Spot Funds at Risk*: In cross-margin mode, if your *futures position* is losing money and reaches the liquidation point, *your spot funds* can be used to cover the losses. This means that the funds from your *spot wallet* can be automatically used to fulfill margin requirements to prevent liquidation.
- *Liquidation of Futures Position*: If you are liquidated on a *futures position*, it is essentially a forced close of that position to ensure that you don’t owe more than what you can cover with your available funds.
- *Loss of Spot Funds*: If you don't have enough margin in your *futures wallet* to cover the losses, the funds from your *spot wallet* will be used to cover the deficit. This can result in a loss of funds from your *spot wallet*.
#Crossmargin #cross #IsolatedMargin
Today's PNL
2025-03-22
-$0.12
-1.05%
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Bullish
See original
Could someone explain to me if the margins are both crossed or isolated? Is it possible to have some return??? I'm new to the coins business and I'm looking to learn about investments to have a basic understanding $BTC $XRP $BNB #AIAgentFrenzy #IsolatedMargin #margemcruzada
Could someone explain to me if the margins are both crossed or isolated? Is it possible to have some return??? I'm new to the coins business and I'm looking to learn about investments to have a basic understanding $BTC $XRP $BNB #AIAgentFrenzy #IsolatedMargin #margemcruzada
My 30 Days' PNL
2024-12-18~2025-01-16
+$14.4
+2271.53%
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What is the difference between isolated trading mode and mutual trading mode?#IsolatedMargin # The difference between isolated trading mode and mutual trading mode Isolated trading mode - Definition: Isolated trading mode is a trading mode in which trading funds are separated from other funds in the account. - Purpose: The purpose of isolated trading mode is to protect other funds in the account from losses resulting from trading.

What is the difference between isolated trading mode and mutual trading mode?

#IsolatedMargin
# The difference between isolated trading mode and mutual trading mode
Isolated trading mode
- Definition: Isolated trading mode is a trading mode in which trading funds are separated from other funds in the account.
- Purpose: The purpose of isolated trading mode is to protect other funds in the account from losses resulting from trading.
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