Isolated Margin vs Notional Exposure

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.

The total market value of a leveraged derivatives position, calculated as margin × leverage; the correct basis for applying risk management rules to leveraged trades; a $2,000 margin position at 10x leverage carries $20,000 of notional exposure and must be risk-managed accordingly.