Cross Margin vs Margin Ratio
Quick comparison to help you distinguish these two crypto terms.
Cross Margin
intermediate
strategy
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.
Read full definitionMargin Ratio
intermediate
strategy
The current margin balance divided by the maintenance margin requirement, expressed as a percentage; when the margin ratio reaches 100%, the exchange triggers liquidation; real-time monitoring of margin ratio is the core operational discipline for managing leveraged positions.
Read full definition