# Isolated Margin vs Cross Margin: Which One Is Right for You?

The most common confusion for contract novices is these two modes. Simply put:

**Full Margin** = All the money in the account can be used as margin.
- Advantages: Anti-loss, not easy to be liquidated
- Risk: A large loss in a position may result in a total loss of capital.
- Suitable for: aggressive traders, confident large orders

**Isolated Margin** = Each position is independent, and losses are limited to that position.
- Advantages: Risks are controllable, and the maximum loss in liquidation is the margin of this position.
- Risk: Requires manual margin addition, easy to be liquidated.
- Suitable for: conservative traders, those who want to control single trade risk

Example Comparison:
The accounts are all 2000U, each taking 1000U to long BTC with 10x leverage.
- A uses isolated margin: BTC drops to the liquidation price, losing 1000U and is liquidated, leaving 1000U remaining.
- Full Margin with B: When BTC drops to the liquidation price, the system automatically adds margin, and the position remains alive. If BTC rebounds, it can recover, but if it continues to fall, it may result in a total loss.

The core difference is: full margin is to "bet big on one", while isolated margin is to "control the loss of a single trade."

Liquidation Risk Calculation: Isolated = Maintenance Margin / Position Margin × 100%, Cross = Maintenance Margin / ( Available Balance + Position Margin ) × 100%. A warning will be received when it reaches 70%, and liquidation occurs when it exceeds 100%.