Trading

Isolated Margin Mode & Cross Margin Mode

2024-06-22 05:010717

Bitget traders can trade in either Isolated Margin Mode or Cross Margin Mode. Each mode treats the position margin and available assets in Futures account differently, which allows traders to handle their funds allocation or to monitor the risks based on their strategy.

What is Isolated Margin Mode?

The position margin opened by traders will be allocated independently for each trading pair. Traders' position will only lose the allocated position margin if liquidation happens to an Isolated Margin position, it will not affect the remaining assets in Futures account. For example;

Trader X has 100 USDT in Futures account and opens a BTC/USDT long position with initial margin of 10 USDT. If liquidation happens to this BTC/USDT long position, its position margin of 10 USDT will be depleted as loss but it will not affect the remaining 90 USDT from futures account (assuming no trading fees involved in this example).

If you wish to increase/decrease margin in an Isolated Margin position, you need to add it manually by clicking the pencil icon from your existing position.

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You can choose to increase/decrease margin by entering values or scrolling the bar based on our available assets. Also, a new feature to add in margin automatically is opted in here.

What is Cross Margin Mode?

All available assets in Futures account are shared among the Cross Margin positions. In other word, this mode uses the Futures account availability to correspond each trading pair to avoid liquidation. In the event of liquidation, all balance in Futures account including the position margin will be depleted/liquidated when the account equity is lower than the maintenance margin. Kindly take note that Cross Margin mode is default in each Futures trading pair.

No adding of margin is required in Cross Margin Mode as long as you have sufficient assets in Futures account.

How to change between Isolated Margin Mode or Cross Margin Mode?

Click and choose the [Isolated/Cross] on the top right corner of Futures page.

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When you hold an existing position in a specific trading pair or having an pending order, you are not allowed to switch to [Isolated/Cross] until the order is closed.

Switching to any of the mode only applies to the specific contract. For example, you can use Cross Margin Mode in BTC/USDT contract while having Isolated Margin Mode in ETH/USDT contract.

Additional note: In copy trading, followers are unable to "copy" the margin mode (Isolated or Cross) from elite trader. Followers have to set their own margin mode in Futures page before they start with the copy trading.