Cross Margin vs Isolated Margin

A margin mode in which the entire account balance is available to prevent liquidation of any open position; useful for hedging strategies with offsetting positions, but risks total account loss if a large position moves severely against the entire book.

A margin mode in which only the capital specifically assigned to a position is at risk; if liquidated, the loss is limited to the assigned margin and does not affect the rest of the account balance; the correct default mode for speculative directional trades.