Cross Margin vs Isolated Margin
Isolated margin caps a position's loss at the margin you assigned to it. Cross margin backs every position with your whole account balance, so liquidation sits much further away but the entire balance is at risk. Choose isolated for a defined loss, cross when you will actively manage the account.
Enter one position and the money you keep in the account outside it. The calculator shows both liquidation prices side by side, using the same maintenance-margin model as the liquidation price calculator.
Last updated · How the cross-margin number is calculated
Results
- Position size (notional)
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Isolated
- Liquidation price
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- Move to liquidation
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- Most you can lose
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Cross
- Liquidation price
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- Move to liquidation
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- Most you can lose
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At the test price
- Position P&L
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- Isolated: value of the position
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- Cross: account value
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Worked example: one BTC position, two margin modes
The position is identical in every row: same entry, same size, same $1,000 of margin. Only the money left in the account changes, and under cross margin that money moves the liquidation price. Under isolated margin it does not.
| Free balance outside the position | Isolated liquidation | Isolated: most you can lose | Cross liquidation | Move to liquidation (cross) | Cross: most you can lose |
|---|---|---|---|---|---|
| $0 | 74,210 | $1,000 | 74,210 | 9.5% | $1,000 |
| $500 | 74,210 | $1,000 | 70,110 | 14.5% | $1,500 |
| $2,000 | 74,210 | $1,000 | 57,810 | 29.5% | $3,000 |
| $5,000 | 74,210 | $1,000 | 33,210 | 59.5% | $6,000 |
The same idea at different leverage
| Leverage | Position size | Isolated liquidation | Move to liquidation (isolated) | Cross liquidation | Move to liquidation (cross) |
|---|---|---|---|---|---|
| 5x | $5,000 | 66,010 | 19.5% | 410 | 99.5% |
| 10x | $10,000 | 74,210 | 9.5% | 41,410 | 49.5% |
| 20x | $20,000 | 78,310 | 4.5% | 61,910 | 24.5% |
| 50x | $50,000 | 80,770 | 1.5% | 74,210 | 9.5% |
Assumptions: generic exchange model, MMR = min(0.5%, 0.5 ÷ L) taken on entry notional, a single position (no other open trades), fees and funding ignored. Entry is an example, not a live quote. Cross margin as modelled here uses the whole free balance as a buffer; some venues cap or tier what counts. Full formulas and data dates: methodology.
How the two modes work
Isolated margin
You assign a fixed amount of margin to the position. If the market moves against you until that margin is used up to the maintenance level, the position is liquidated and nothing else in the account is touched. You can usually add margin by hand to push liquidation further away.
Cross margin
All free balance in the account counts as collateral for every open position. Losses on one position are paid from the shared pool, and profits on another help keep it open. Liquidation only happens when the whole account's equity falls to the combined maintenance margin.
In the formulas the only difference is what sits on the equity side. Isolated uses the margin you assigned,
E × (1 − 1/L + MMR) for a long. Cross uses E − (W − MMR × N) ÷ Q, where W is the whole account balance,
N the total notional and Q the quantity. With no free balance the two are identical; every extra dollar of free balance moves the cross liquidation price by that dollar divided by the position's quantity.
When to use which
- Isolated when you want a defined worst case per trade, when you run several unrelated ideas in one account, or when you size by risk with a stop you trust. A bad trade cannot spill into the rest of your balance.
- Isolated for high leverage. At 50x the position has a cushion of only a couple of percent, so you want its failure limited to the margin you chose.
- Cross for low leverage on one or two positions where you would rather ride out a deep wick than be stopped out, and where you monitor the account.
- Cross for hedged books (for example a long and a short that offset each other), because one position's loss is the other's gain and the shared pool avoids liquidating either leg early. How a venue values the hedge differs, so check its rules.
Neither mode changes the profit on a winning trade for the same size. Leverage, size and entry decide that; the mode only decides what is exposed when it goes wrong.
Risks of each mode
- Cross can take everything. One position that runs far against you can consume the entire balance, including money you meant for other trades. The table above shows the maximum loss growing from $1,000 to $6,000 as free balance grows.
- Cross hides risk. A far-away liquidation price feels safe, yet the dollar loss before that point is large. Judge a cross position by the account loss you accept, not by the liquidation distance alone.
- Isolated can liquidate on a normal move. A thin cushion at high leverage is hit by ordinary volatility. If you add margin by hand, you are choosing a partial cross-like exposure for that position.
- Margin top-ups cost attention. Isolated positions that you keep alive by adding margin turn into larger losses than planned if you do it repeatedly.
- Venue rules matter. Maintenance tiers, liquidation fees, partial liquidation, auto-deleveraging and how unrealised profit counts toward margin all change real results. This page models none of them beyond a flat maintenance rate.
What differs between exchanges
Terms are not uniform. Some venues let you choose per position, some set the mode per market or per account, and a few offer only one. Some add a portfolio margin mode that nets risk across positions. In cross mode, some venues count only the balance in the same collateral currency; others value several assets with haircuts. Open positions on the opposite side may or may not offset each other.
Before relying on any number, read your venue's margin documentation and compare its own liquidation estimate with this page. LeverUp mode elsewhere on this site models isolated margin with a fixed margin-loss rule, so the cross figure here uses the generic model only.
FAQ
What is the difference between cross margin and isolated margin?
Isolated margin limits a position to the margin you assigned to it, so liquidation costs you only that amount. Cross margin shares your whole account balance across all positions, which delays liquidation but puts the full balance at risk.
Which is safer, cross or isolated margin?
Isolated is safer for the rest of your balance because the loss is capped at the position's margin. Cross is less likely to be liquidated on a short-term wick, but a large adverse move can cost more than the position's own margin. Neither is safe at very high leverage.
Is cross margin better for beginners?
Usually the opposite. A beginner is better served by isolated margin and a stop, because the worst case is known in advance. Cross margin rewards active account management and a clear idea of how much of the balance you are willing to lose.
Does the liquidation price change when I add free balance in cross mode?
Yes. Each extra dollar of free balance moves a long's liquidation price down by that dollar divided by the position quantity. In isolated mode it does not move unless you assign that balance to the position as margin.
Can I switch modes while a position is open?
It depends on the venue. Many allow switching only when there is no open position or open order in that market, and some do not allow it at all. Check the venue's rules before planning around it.
Related: liquidation price calculator · position size calculator · what 10x leverage means · methodology · Trade with LeverUp via partner link (not advice).