Isolated Margin Mode
The isolated margin mode means that the margin of the position is separated from the trader's account balance. In this margin mode, traders can freely decide the leverage to be used. If the position is forced to close, the maximum loss that the trader needs to bear is the position margin.
Cross Margin Model
The cross margin mode refers to using all available balances in the corresponding currency as position margin to maintain the position and avoid forced liquidation. In this margin mode, a liquidation will be triggered when the equity is insufficient to meet the maintenance margin requirement. If the position is forced to close, the trader will lose all the assets in the corresponding currency.
Only isolated positions can adjust the margin. When adjusting the isolated margin:
The maximum margin that the user can reduce = Max (isolated total equity - initial margin, 0)
User can increase the maximum margin = available
Under the cross margin, the trader cannot adjust the margin. The system will use the maximum leverage allowed under the current risk limit to calculate the initial margin by default.
Can I switch between cross-position and isolated-position mode when I hold a position? Can't. When holding positions or pending orders in this contract, the margin mode cannot be adjusted.