bitcastle Futures Trading – Margin Mechanism in Cross Margin and Isolated Margin Modes

This article explains how margin works in Cross Margin Mode and Isolated Margin Mode in futures trading.

Understanding how margin is handled in each mode is important for managing risk and maintaining open positions.

🔍 Cross Margin Mode

In Cross Margin Mode, margin is shared across all open positions using the same margin asset.

💡 Key Characteristics

✅ All positions share the same margin balance
✅ Profits from one position may help offset losses in another
✅ Margin is managed at the account level

⚠️ Important Notes

🚨 If total account margin becomes insufficient, multiple positions may be affected.

There is no function to manually adjust margin for individual positions in Cross Margin Mode, because margin is managed at the account level.

💰 Margin Usage

Margin in Cross Margin Mode may be used for:

• Maintaining open positions
• Covering trading losses
• Deducting funding fees
• Bonus margin consumption (if applicable)

🔍 Isolated Margin Mode

In Isolated Margin Mode, margin is assigned separately to each position.

💡 Key Characteristics

✅ Each position has its own dedicated margin
✅ Losses are limited to the margin allocated to that position
✅ Other positions are not directly affected

⚠️ Important Notes

🚨 If margin in a specific position becomes insufficient, only that position may be liquidated.

Unlike Cross Margin Mode, some systems may allow manual margin adjustment per position (if supported by platform specifications).

📊 Key Differences
 

🛡 Risk Management Reminder

Please monitor the following regularly:

✅ Margin balance
✅ Unrealized PnL
✅ Liquidation price
✅ Open positions

If margin balance falls below maintenance requirements, liquidation may occur.


If you have further inquiries, please don't hesitate to contact our Support Team via "Contact Us" function.