Introduction to Margin Modes
CoinEx supports two margin modes: Cross Margin Mode and Isolated Margin Mode.
1. Cross Margin Mode
Under Cross Margin Mode, all available margin in the Futures account will be shared across all open positions.
(1) How It Works:
When the Cross Position Margin falls below the Cross Maintenance Margin level, the system will initiate the liquidation process and partially or fully liquidate the positions under Cross Margin mode.
(2) Recommendation: Cross Margin Mode is ideal for traders with sufficient funds who are willing to take on overall account risk.
2. Isolated margin mode
Under isolated margin mode, the margin for each position is separated, not shared with other positions.
(1) How it works: The system will not automatically add margin from the available balance to the position. Traders must add margin manually.
- If a position incurs losses and the margin is not added in time, the position is at risk of forced liquidation.
(2) Recommendation: Isolated Margin Mode is ideal for traders with lower risk tolerance or those who prefer to isolate risks across different positions.
Cross Margin vs. Isolated Margin
| Margin Mode | Cross Margin | Isolated Margin |
| Margin Allocation | The available balance in the account is shared as margin across all positions | Each position has an independent margin; PNL does not affect other positions |
| Risk Level |
High Losses in a single position may trigger liquidation of all positions in the account |
Low Losses are limited to the margin of the specific position (risk is isolated) |
| Liquidation Mechanism | When the account margin is insufficient, all positions may be forcefully liquidated | Only the losing position is liquidated; other positions remain unaffected |
| Capital Utilization |
High The funds are centrally allocated, amplifying leverage efficiency |
Low Independent margin limits capital reuse; more funds must be reserved for risk management |
| Cost Considerations | The funding fees are calculated at the account level and may create hedging costs | The funding fees are calculated independently per position, suitable for directional bets |
| Extreme Market Conditions | During sharp price crashes, total account margin may become insufficient instantly, potentially triggering cascading liquidation of all positions | Only the losing position is liquidated, but highly-leveraged (e.g., 100x) positions may be liquidated with even a 1% price fluctuation |
| Suitable For |
1. Experienced traders 2. Arbitrage trading 3. Hedging strategies |
1. Beginner traders 2. Short-term speculation 3. High-risk leveraged trading |
Notes
1. Switching margin modes: If there are open or unfilled orders, you cannot switch between Cross Margin and Isolated Margin modes, nor can you adjust the leverage.
2. Insufficient margin: If the available margin in your account is not enough to cover the increased margin requirements, you will not be able to raise the leverage.
3. Leverage limits: When increasing the leverage, the system ensures that it does not exceed the maximum leverage available for the current position size.
4. Recalculation of margin: After adjusting the leverage, the system will recalculate the required position margin. Please pay close attention to changes in the liquidation price.
Risk reminder
The fundamental difference between Cross margin and Isolated margin lies in risk concentration and funds management. Please choose the appropriate mode based on your risk tolerance and market conditions.
🔗 Learn more: What is Tiered Maintenance Margin