GlossaryAdvanced
Isolated Margin
A margin mode where only the collateral assigned to a specific position is at risk.
Isolated margin is a margin trading mode where a fixed amount of collateral is assigned to one specific position, limiting potential loss on that position to only that assigned amount, rather than a trader's full account balance.
This contains risk to a single position, but also means that position may be liquidated even if the trader has other available funds in their account.
Examples
- A trader using isolated margin on one position can prevent losses there from affecting their other holdings.
- Isolated margin caps potential loss on a position to the collateral specifically assigned to it.