Beginners often ask, "Which margin mode should I choose?" and when answering this question, we usually recommend isolated margin. But why is that? Let's explain this in detail and also clarify what cross margin is.

Let's start with isolated margin. Suppose you have $200 in your futures wallet. The price of X coin is $1,000, and you open a position with $100 using 10x leverage. In this case, the position size is 1 X coin, worth $1,000. The $100 margin you used in isolated mode only affects this position; the remaining $100 in your wallet stays completely separate. That means only the $100 at risk, and your other funds remain untouched.

The liquidation price for this position will be $900. Why? Simple: you risked $100 and used 10x leverage, so you opened a position worth $1,000. When the price of X coin drops by 10%, to $900, your $100 loss will be realized, and the position will be liquidated. But the important thing here is, because you opened this position in isolated mode, the remaining $100 in your wallet will not be affected; you will only lose the $100 you allocated to this position.

The advantage of isolated margin is this: if sudden bad news or volatile drops happen, you lose only the amount in that position instead of risking your entire balance. The disadvantage is that the liquidation level is closer. Now, let's understand what cross margin is and compare it.

What if you opened the same example in cross margin mode? You still open a 1 X coin position worth $1,000, but this time, the liquidation price drops to $800 instead of $900. Why? Because in cross mode, you risk all $200 in your futures wallet. When you open a cross position, your entire margin pool is your total balance.

What is the advantage of cross margin mode? Suppose X coin drops from $1,000 to $850, so you incur a loss, but then it starts to rise again and reaches $1,100. Because you opened in cross mode, your position didn't get liquidated before reaching $800, and it even turned profitable with a $100 gain. If you had opened in isolated mode, your position would have been liquidated at $900, and you would have lost $100.

In summary, cross margin mode carries higher risk but offers more resilience against liquidation. Isolated margin mode offers more control over risk but is closer to liquidation. If you want to push your liquidation price further away in isolated mode, you can add margin by clicking the plus button in the margin section of that position.

Also, remember this: each position opened in isolated mode is independent and does not affect your other positions. However, positions opened in cross mode are interconnected; profits or losses in one affect others because they all share the same margin pool. Which mode you choose depends entirely on your risk tolerance and strategy. If understood correctly, both modes can be profitable—keep following for updates.