Cross margin and isolated margin are two different margin modes in futures trading that directly affect your risk management approach. You need to register on Binance and complete verification before starting futures trading.
Cross Margin Mode
In cross margin mode, all available balance in your futures account serves as margin for your positions. When a position experiences unrealized losses, the system automatically supplements margin from your account balance to prevent liquidation.
Pros: Less likely to be liquidated by small fluctuations on a single position. Cons: If liquidation does occur, all funds in the account are affected.
Isolated Margin Mode
In isolated margin mode, each position uses independent margin. The maximum you can lose is the margin you allocated when opening the position. Even if one position gets liquidated, it doesn't affect other funds or positions in your account.
Pros: Controllable risk with a defined maximum loss per position. Cons: Easier to trigger liquidation when margin is insufficient.
How to Choose
- Beginners should use isolated margin: Controls the maximum loss per trade, preventing one mistake from wiping out all funds during the learning phase
- Experienced traders can use cross margin: Greater flexibility, less likely to be stopped out by brief price swings
- When holding multiple positions, use isolated margin: Each position's risk is independent without affecting others
How to Switch
On the Binance futures trading page, you can switch between "Cross" and "Isolated" before opening a position. Trading pairs with existing positions can sometimes also switch modes, but it's safer to switch when you have no open positions.
Download the Binance APP to easily toggle between margin modes on the futures trading interface.