One of the most important questions facing any new trader in the world of futures:
Should I choose Cross or Isolated?
Let's understand the difference in detail + practical examples👇
📌 First: What is Cross Margin?
🔸 This means that the entire balance in the futures account may be at risk.
🔸 If the deal loses, the platform may deduct from your general balance so that the deal does not close quickly.
📉 Practical example:
If you have 100 USDT, and you open a trade of 20 USDT using Cross,
If the price goes against you, the platform will start taking from the remaining 80 to cover the loss!
✅ It is used by professionals because they know how to monitor the trade and use advanced protection strategies.
⸻
📌 Second: What is Isolated Margin?
🔹 This means that the deal is limited to the amount you deposited only.
🔹 If the deal loses, the platform will not touch the rest of your balance.
🔹 You can specify the maximum loss in advance.
📉 Practical example:
If you open a trade of 20 USDT using Isolated,
Even if you lose completely, you will only lose 20.
✅ This is best for beginners because it protects you from losing your entire account if the market goes against you.
⸻
🔄 Direct comparison:
Isolated ⚠️ Cross ⚡
High security ✅ Low security ❌
Limited risk 💡 Open 🔥
Control is big 🧠 little 😓
For beginners? Yes ✅ No 🚫
✅ My advice to you as a beginner:
Always start with Isolated Margin
- Until you learn to control the deals
- Protects your balance from total collapse
With experience, you can start trying Cross under certain conditions... but with extreme caution!
📍In the next post:
What are the best currencies to trade on Futures?
How do you choose the right currency based on trend and liquidity? 📈