{"slug":"margin","term":"Margin (Cross vs Isolated)","category":"Derivatives","definition":"Margin is the collateral backing a leveraged position, and the margin mode decides what's at risk. Isolated margin caps the loss at the amount assigned to that one trade; cross margin lets the entire account balance defend every open position — a bigger buffer before liquidation, but one bad trade can drain the whole wallet.","street":"Isolated means one trade can only burn its own pocket money; cross means every trade can raid the whole wallet.","depth":["Isolated: you assign, say, ₹5,000 to a trade — that's the most the position can lose, and its liquidation price is calculated off that amount alone. Cross: your whole available balance is the buffer, so the same position can draw down much further before liquidating — but every other position and all your unused balance are on the hook for it. Same entry, same leverage setting, very different liq prices. Most exchanges default to cross; check the toggle before your first entry, not after.","Isolated is the right default for directional punts — your worst case is known before you click. Cross earns its keep on hedged books, long one pair short another, where PnL offsets, or when you actively manage margin. The account-killer is cross plus one \"sure thing\": the losing trade quietly drinks the whole balance to stay alive, and when it finally liquidates it takes the wallet, not the pocket money. If you wouldn't consciously add margin to a loser, don't run a mode that does it automatically."],"live":{"label":"What over-leverage cost, hour by hour","href":"/liquidations"},"related":["leverage","liquidation","mark-price"]}