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A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Isolated margin assigns collateral to an individual futures position; cross margin shares eligible collateral within a defined account or product pool. Isolated margin can limit which funds support a losing position, while cross margin can use spare eligible collateral to support positions—but it can also expose more of that shared pool to losses. The exact boundary and liquidation rules depend on the exchange, contract, collateral, and account mode.
How the collateral is allocated
Isolated margin: collateral assigned to a position
With isolated margin, collateral is allocated to a particular position or trading pair. The position’s liquidation risk is assessed against the margin assigned to it, rather than automatically drawing on unrelated account funds. Some platforms let traders add margin to an isolated position or enable an auto-replenishment feature, so isolation is not necessarily an absolute barrier between that position and every other account balance.
For example, Bybit says its Auto-Margin Replenishment (AMR) feature can use available account balance when triggered. Whether that applies depends on the platform’s feature and settings.
Cross margin: eligible collateral shared within a defined pool
Cross margin pools eligible collateral within a specified account, wallet, asset, or product scope. That shared balance may support multiple positions, so spare eligible collateral can help a position withstand adverse movement. The same sharing means losses can draw on more of the eligible pool than the collateral initially associated with one position.
“Cross” does not automatically mean every asset held at an exchange is exposed. Binance’s COIN-M futures documentation, for instance, says BTC in the COIN-M Futures Wallet can support BTC-based perpetual and delivery contracts in Cross Margin Mode. That describes a particular wallet and product—not all Binance assets or wallets.
What happens when a position loses value
Isolated liquidation is assessed at the position level
In Bybit’s Unified Trading Account (UTA) rules, an isolated position is liquidated when Mark Price reaches that position’s liquidation price. Bybit’s FAQ says the risk is assessed using the margin allocated to the position, and adding margin can change that position’s risk. These are Bybit-specific rules, not a universal futures-market standard.
Cross liquidation can depend on the account’s other positions
Under Bybit UTA rules, cross-margin risk is assessed across positions, and liquidation is triggered when the account’s maintenance margin ratio (MMR) reaches 100%. Because the assessment is account-level, a displayed liquidation price can depend on other positions and available collateral; it may change when positions, balances, or market marks change. Other exchanges or products may use different definitions and triggers.
Bybit UTA also offers Portfolio Margin, a separate mode that evaluates risk at the portfolio level. It is not another name for cross margin.
Compare the trade-offs
| Question | Isolated margin | Cross margin |
|---|---|---|
| What collateral supports the position? | Margin assigned to that individual position or pair. | Eligible collateral shared within the defined account or product pool. |
| What may happen to other funds if the position deteriorates? | Unrelated account funds are not automatically added; platform features such as AMR or manual margin additions can change this. | Other eligible collateral in the pool may support the position and may be consumed by account losses. |
| How is liquidation risk evaluated? | Position-level under Bybit’s isolated rules; liquidation is triggered when Mark Price reaches the position’s liquidation price. | Account-level under Bybit UTA’s cross rules; liquidation is triggered when MMR reaches 100%. |
| How is collateral adjusted? | Margin can be added to the particular position where the platform permits it. | Eligible balances are shared within the applicable pool rather than assigned only to one position. |
| What defines the boundary? | The position or pair, plus any enabled platform features that can add collateral. | The exchange’s account mode, wallet, eligible assets, contract, and applicable risk rules. |
The liquidation entries in this table describe Bybit UTA rules; the collateral examples are general descriptions, not guarantees that every exchange implements the modes identically.
How to check a futures product’s actual rules
- Identify the exact contract and margin mode. Confirm whether you are looking at a perpetual or delivery contract, the relevant futures product, and the selected account mode.
- Find the collateral boundary. Check the exchange documentation for which wallet, assets, and balances are eligible. Do not assume spot balances, another futures wallet, or every account asset can support the position.
- Read the liquidation rule for that product. Establish whether liquidation is based on a position liquidation price, an account-level maintenance-margin condition, or another stated rule. Keep exchange-specific thresholds in context.
- Check features and risk conditions. Look for auto-replenishment, manual margin additions, maintenance-margin tiers, collateral haircuts, and platform procedures that affect the pool or liquidation process.
Margin mode is only one part of futures risk. Leverage, position size, maintenance-margin requirements, mark-price movements, collateral treatment, and exchange procedures can also affect whether losses consume collateral or trigger liquidation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Which mode fits the risk boundary you want?
Isolated margin is the more contained structure when you want a position’s collateral allocation kept distinct, subject to any enabled feature that can add funds. Cross margin can make eligible balances available across supported positions, but that flexibility comes with shared exposure. Neither mode is inherently safer for every trader: the important question is which funds the exchange can use under the specific contract and account settings.
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