What are isolated margin and cross margin in cryptocurrency trading?
Isolated margin and cross margin are two different types of margin available on many cryptocurrency trading platforms.
In isolated margin, investors decide the amount of resources they want to allocate as collateral for a specific position, and the rest of the account balances are not affected by this trade.
Cross margin uses all available funds in your account as collateral for all trades. If a position moves against your strategy, but another position is profitable, the profit can be used to cover the loss, allowing you to keep your position open for longer.
The choice between isolated margin and cross margin comes down to each trader's strategy, including risk tolerance and how actively the investor wants to manage their positions.
