Isolated margin- Crypto trading- BTCMEX Explained

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When margin trading a trader needs to choose what margin mode he will use which can either protect his assets when liquidated or risk more assets but reduce the chances of liquidations. Isolated Margin is the default setting on most margin trading exchanges and protects a user's assets when liquidated.

When trading derivatives, the collateral placed to open a position is called margin. Margin can be placed in either isolated mode or cross mode. In isolated margin mode only a fixed amount of collateral, such as USDT or BTC, is used to open a position.
Doing so limits the possible loss to only the amount of collateral placed, but increases the risk of forced liquidation as no additional margin will be placed to cover a position's loss. For example, Maria opens a 10 BTC position with 5X leverage. She has 6 BTC in her wallet, but only uses 2 to open this position. Should she be liquidated, she will lose her entire margin placed in isolated mode; in this case 2 Bitcoins. She will, however, still have 4 BTC left in her wallet. Using Isolated margin allowed her to control the amount of collateral she risked when opening a position."
"BTCMEX Explained are short, concise educational videos made to be viewed in 30 seconds each to be viewed at anytime, anywhere, and learn how to trade cryptocurrencies quickly.


BTCMEX Explained is a project of the cryptocurrency derivatives exchange BTCMEX at www.btcmex.com . The exchange offers linear and reverse perpetual contracts with up to 125X leverage, low fees, deep liquidity, low slippage, and no overloads. The platform is translated in 6 languages, has 24/7 CS, and can be accessed anytime from anywhere on PC or APP.
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Crypto Trading
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