Isolated Margin
Collateral: Margin is assigned to a single, specific position.
Risk: Limited to the margin of that specific position.
Liquidation: Only the losing position is liquidated.
Control: Requires manual management of margin.
Use Case: Ideal for high-risk, speculative trades where you want to limit your risk to a single position.
Cross Margin
Collateral: The entire account balance is used as a shared collateral pool for all positions.
Risk: Your entire account is at risk.
Liquidation: All positions may be liquidated if the entire account balance is depleted.
Control: Offers automatic margin management.
Use Case: Suitable for hedging, managing multiple positions, and maximizing leverage.