Cross Margin vs Isolated Margin: What Is the Difference and Which Should You Use?

What the two modes are

Isolated: each position gets its own slice of margin. A move against you only consumes that slice, and when it is gone the position is liquidated; the rest of the account is untouched.

Cross: the available balance of the same currency backs every open position, and gains and losses offset each other. Liquidation depends on the margin ratio of the whole account, not of a single position.

How far apart the liquidation prices are

A hypothetical example: an account holds 1,000 USDT and opens a BTC long with 1,000 USDT notional at 10x. In isolated mode only 100 USDT is posted, and a drop of about 9.6% liquidates it. In cross mode all 1,000 USDT backs the position, and price would have to fall almost to zero before liquidation.

So the same position is far easier to liquidate with a single wick in isolated mode. Cross rarely liquidates, but the loss does not stop at one position's margin either. The numbers are illustrative; real liquidation prices also depend on the maintenance margin rate and fees.

Where each one's risk sits

Isolated margin's risk is that liquidation is too close. At high leverage it can be only a few percent away, normal volatility may hit the liquidation price before the stop, and the exchange charges extra when it liquidates you.

Cross margin's risk is that there is no ceiling. Without a stop-loss a single trade can keep losing until it eats the whole balance, and positions affect each other: a loss on one pulls the others' liquidation prices closer.

Why the platform uses cross margin

The platform always places OKX orders in cross mode and sets Binance contracts to cross. Every entry is placed together with an exchange-side stop order, so the maximum loss per trade is set by the stop, not by liquidation. Cross margin keeps the liquidation price far beyond the stop, so a wick cannot liquidate the position before the stop fires.

To keep "the whole account" bounded, bind a dedicated exchange sub-account that only holds the funds you want the strategy to trade. Before each entry the platform also checks the available balance, keeps a minimum free-balance ratio (10% recommended) and caps the number of open positions.

Which to choose: a checklist

If you trade by hand, often skip stops or hold losers: isolated is safer, because at least the loss stays inside one position's margin.

If every trade has an exchange-side stop, or you use automated execution: cross margin with a sub-account fits better. The stop caps each loss and the sub-account caps total funds. In either mode, never treat liquidation as your stop-loss.

Can cross margin wipe out my whole account?

It can without a stop-loss. In cross mode a single loss can grow until it consumes the entire available balance, so cross margin must be paired with stops, ideally in a sub-account that only holds strategy funds.

Can I switch to isolated margin on the platform?

No. The platform always trades in cross mode so the liquidation price stays far from the stop. To limit total risk, control funds with a sub-account and adjust base margin and maximum positions in the strategy settings.

Are fees the same in cross and isolated mode?

Yes. Fees depend only on traded notional and whether the order is maker or taker, not on the margin mode.