Cross Margin and Isolated Margin are two margin modes in cryptocurrency trading.
It should be noted that BexBack only provides cross margin trading.
Cross Margin Mode:
In Cross Margin mode, each position is supported by the entire available account balance. The total account equity is used as collateral, and the unrealized profit or loss from one position can offset losses or gains in other positions. Cross Margin provides a more flexible approach to risk management.
Isolated Margin Mode:
Isolated Margin mode allocates a specific amount of margin to each position, isolating the risk of one position from another. It helps to prevent the liquidation of the entire account due to the losses in a single position. Traders need to manage the margin for each position individually, and the risk is limited to the margin assigned to that position.
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