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Isolated vs Cross Margin: A Practical Guide

A clear, data-driven guide to isolated vs cross margin.

Isolated margin

Each position has its own collateral. If it is liquidated, only that margin is lost. Liquidation price for a long ≈ entry × (1 − 1/leverage + maintenance margin rate).

Cross margin

All positions share account equity. Gains on one offset losses on another, delaying liquidation, but a large move can wipe the entire balance.

Worked example

A 10× long at $60,000 with 0.5 percent maintenance margin liquidates near $54,300. With cross margin and $5,000 extra equity on a $6,000 margin, the liquidation price drops considerably.

Maintenance tiers

Exchanges raise maintenance margin for larger positions; a $10 million BTC position may require 1–2.5 percent instead of 0.5 percent, moving the liquidation price closer.

Choosing a mode

Isolated suits speculative trades with defined risk; cross suits hedged portfolios. Always account for funding and fees, which reduce margin over time.

By the numbers

For Isolated vs Cross Margin, the reference figures are topic of Isolated vs Cross Margin, level of Intermediate, updated of 2026. The comparison table below lines up leverage, long liq. price (entry $60k, mmr 0.5%) — 2×: ~$30,300; 5×: ~$48,300; 10×: ~$54,300; 20×: ~$57,300.

Modeling Isolated vs Cross Margin with the Leverage Liquidation Price Calculator

The Leverage Liquidation Price Calculator takes three inputs — Entry ($), Leverage (x), Maintenance margin (%). Long liq ≈ entry × (1 − 1/lev + MMR). With its default inputs (Entry ($) = 60000; Leverage (x) = 10; Maintenance margin (%) = 0.5) it returns 54,300 $; swap in the figures from Isolated vs Cross Margin above to reproduce the scenario yourself.

Modeling Isolated vs Cross Margin with the Margin Maintenance Collateral Haircut Calculator

The Margin Maintenance Collateral Haircut Calculator takes three inputs — Collateral ($), Haircut (%), Borrowed ($). Coverage = collateral × (1 − haircut) ÷ debt. With its default inputs (Collateral ($) = 10000; Haircut (%) = 20; Borrowed ($) = 5000) it returns 1.6 x; swap in the figures from Isolated vs Cross Margin above to reproduce the scenario yourself.

Data Table

For educational and informational purposes only. Not financial, investment, tax or legal advice. Figures are approximate and historical; crypto assets are volatile and you may lose capital. Do your own research.