Day 33 of 100 – Understanding Binance's Cross vs. Isolated Margin Mode

When trading with leverage on Binance, you'll come across two key margin modes: Cross Margin and Isolated Margin. Knowing the difference can help you manage risk effectively.

1. Cross Margin Mode:

Your entire margin balance is shared across all positions in the same margin account.

If one position goes bad, it can drain your entire margin balance to prevent liquidation.

More flexible, but riskier if not managed properly.

2. Isolated Margin Mode:

Each position has its own margin balance.

Losses are limited to that specific position’s margin.

Safer for beginners or those who want strict risk control.

Tip: If you're just starting, Isolated Mode is often better as it limits potential losses to only what you put into that single position.

Tomorrow: We’ll look at how to switch between Cross and Isolated Margin on Binance step-by-step.