Isolated Margin
Also known as: Position-Based Margin, Single Trade Margin, Isolated Leverage
A margin trading mode where each position is managed separately, limiting risk exposure to a specific trade.
Isolated margin is a trading feature that allows users to allocate a specific amount of funds to a single leveraged position, thereby limiting potential losses to that isolated amount. Unlike cross margin, where funds in one account can be used to support multiple positions, isolated margin keeps each trade independent. This approach helps manage risk, as the liquidation of one position won’t affect others. It is commonly used on centralized and decentralized margin trading platforms like Binance Futures, dYdX, and GMX. Isolated margin is ideal for traders looking to control downside risk per trade.