Isolated Margin vs Margin Ratio

Quick comparison to help you distinguish these two crypto terms.

Isolated Margin
intermediate
strategy

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.

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Margin 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.

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