Introduction to Margin Modes
CoinEx supports two margin modes: Cross Margin Mode and Isolated Margin Mode.
1. Cross margin mode
Under cross margin mode, all available balances in the Futures account serve as a shared margin for all open positions.
(1) How it works:
- When the margin of a position drops below the maintenance margin level, the system will automatically add margin from the available balance to make up for the initial margin to avoid forced liquidation.
- If the margin still does not cover the maintenance margin after all available balance is used up, forced liquidation will be triggered to close all or partial positions for the maintenance margin.
(2) Recommendation: Cross Margin Mode is ideal for traders with sufficient funds who are willing to take on overall account risk.
2. Isolated margin mode
Under isolated margin mode, the margin for each position is separated, not shared with other positions.
(1) How it works: The system will not automatically add margin from the available balance to the position. Traders must add margin manually.
- If a position incurs losses and the margin is not added in time, the position is at risk of forced liquidation.
(2) Recommendation: Isolated Margin Mode is ideal for traders with lower risk tolerance or those who prefer to isolate risks across different positions.
Comparison of Cross Margin & Isolated Margin Modes
| Margin mode | Cross margin | Isolated margin |
| Margin allocation | All balances in the account serve as a shared margin for all positions | The margins are calculated separately for each position; no impact across positions |
| Leverage adjustment |
Default mode The leverage can be adjusted dynamically Note: Higher leverage may elevate the position tier |
Under certain conditions, you can switch between Cross Margin and Isolated Margin as needed Supports manual leverage adjustments for individual positions Note: Margin must be added manually |
| Risk control | Higher risk: losses in one position can affect all positions under an account | Lower risk: losses are limited to the margin of the individual position; risks are isolated |
| Liquidation | If the total account margin is insufficient, all positions may be liquidated | Only the losing position is liquidated; other positions remain unaffected |
| Capital efficiency | High: centralized allocation of funds allows for higher leverage | Low: independent margin limits fund reuse, requiring more reserve capital |
| Cost | The funding fees are calculated across all positions, which may incur hedging costs | The funding fees are calculated independently for each position, ideal for single-direction strategies |
| Extreme market conditions | In case of sudden price crashes, insufficient total account margin may lead to cascading liquidations of all positions | Only the losing position is liquidated; however, high-leverage positions (e.g., 100X) may face liquidation from as little as a 1% price change |
| Target traders |
1. Experienced traders 2. Arbitrage strategies 3. Hedging strategies |
1. Beginners in futures trading 2. Short-term speculators 3. High-leverage traders |
Notes
1. Switching margin modes: If there are open or unfilled orders, you cannot switch between Cross Margin and Isolated Margin modes, nor can you adjust the leverage.
2. Insufficient margin: If the available margin in your account is not enough to cover the increased margin requirements, you will not be able to raise the leverage.
3. Leverage limits: When increasing the leverage, the system ensures that it does not exceed the maximum leverage available for the current position size.
4. Recalculation of margin: After adjusting the leverage, the system will recalculate the required position margin. Please pay close attention to changes in the liquidation price.
Risk reminder
The fundamental difference between Cross margin and Isolated margin lies in risk concentration and funds management. Please choose the appropriate mode based on your risk tolerance and market conditions.
🔗 Learn more: What is Tiered Maintenance Margin