What is Cross Margin and Isolated Margin?

BiKi Perpetual Contracts - What is Cross Margin and Isolated Margin
BiKi Perpetual Contracts – What is Cross Margin and Isolated Margin

Using Isolated Margin means that a trader can only lose his initial margin for that specific position order.

Example: When Bianca places 100 USDT to open a position using Isolated Margin, she will lose a maximum of 100 USDT only. 

Using Cross Margin means that when a trader loses his initial margin for a specific position order, the system will utilize all available margin in his contract account for this position until its 100% used up. 

Example: When Bianca places 100 USDT to open a position using Cross Margin, her 100 USDT position got liquidated but her position remains open as the system taps on her remaining balance of 400 USDT in her contracts account until it has been used up for this position and Bianca’s position will be closed. 

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