Lesson 16: Isolated vs Cross Margin โ Know the Difference ๐๐
Before you open any futures trade, Binance asks: Isolated or Cross?
If you donโt know what that means โ donโt trade yet! ๐ค
Hereโs the full breakdown ๐
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๐ก What Is Isolated Margin?
In Isolated Mode, only the margin you put into that specific position is at risk.
โ If the trade goes bad, you only lose that one position
โ Other funds in your wallet stay safe
Best for: Beginners, short-term trades, and tight risk control ๐
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๐ด What Is Cross Margin?
In Cross Mode, your entire futures wallet balance is shared across all your open positions.
โ Helps avoid liquidation if you have other funds to support the loss
โ But if it goes wrong โ you could lose your whole balance ๐ต
Best for: Advanced traders who know how to manage risk across multiple trades
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Real Example ๐ก
You go long BTC with $100 margin:
In Isolated, only that $100 is at risk
In Cross, if the trade dumps, Binance can take more from your wallet to keep it alive
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Pro Tip ๐ง
Use Isolated when you're testing setups or running high leverage
Use Cross only if you're experienced & managing risk carefully
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Margin mode can save or destroy your capital. Choose wisely every time ๐งฎ๐ผ
Next up: Lesson 17 โ What Is Mark Price vs Last Price ๐ท๏ธ๐