Binance Futures: Cross Margin vs. Isolated Margin

What Is the Difference?

Before opening a futures position on the Binance Official Website or Binance Official App, you must choose Cross or Isolated margin. This choice determines how margin is allocated and how much you lose on liquidation. Apple users see the iOS Installation Guide.

Isolated Margin: Each Position Is Independent

You assign specific margin to each position. If liquidated, you lose only that margin - other funds are safe. Example: 10,000 USDT account, 2,000 USDT assigned to one BTC long at 10x. If BTC drops enough, you lose the 2,000 USDT but keep the other 8,000 USDT. Core feature: risk isolation.

Cross Margin: Shared Pool

All available balance serves as margin for all positions. Liquidation is harder to trigger (bigger margin pool) but when it happens, you can lose your entire futures account balance. One losing position can drag down everything. Core feature: harder to liquidate, but larger potential loss.

Key Comparisons

Liquidation threshold: Cross = further away (safer from liquidation). Isolated = closer (easier to trigger). Liquidation loss: Cross = potentially entire account. Isolated = only assigned margin. Multi-position management: Cross = profits from one position buffer losses on another. Isolated = fully independent. Flexibility: Cross = auto-uses available balance. Isolated = requires manual margin top-up.

When to Use Cross

Hedging strategies (offsetting positions benefit from shared margin). Large account with small positions (ample buffer). Long-term trend trades that need to withstand drawdowns.

When to Use Isolated

Beginners learning futures (strict per-trade risk control). High-leverage short-term trades. Running multiple independent positions. Testing new strategies with limited capital.

Can You Switch?

Yes, before opening a position on a given pair. But you cannot switch while holding a position on that pair - close first, switch, then re-open. Different pairs can use different modes simultaneously.

Adding Margin in Isolated Mode

When a position nears liquidation, you can add margin to push the liquidation price further away. This is useful but risky - if the direction is wrong, you are just delaying larger losses.

Recommendation

Beginners should start with Isolated margin. The risk is transparent and capped per trade. Once experienced, choose based on strategy. Regardless of mode, always use stop-losses - never let liquidation be your exit strategy.