There is no absolute good or bad between cross margin and isolated margin—the core difference is whether you are willing to pay for the mistakes of other positions. The choice depends on your trade-off between capital efficiency and risk isolation.
Prerequisites
Logged into an OKX account and the trading mode has been switched to [Spot and Contract Mode] or a higher mode.
Ready to trade using [Perpetual Swap] or [Futures].
A clear trading pair and planned position size.
Cross Margin Mode: Shared Collateral, Offset Profits and Losses
In cross margin mode, all positions under the same margin asset share the margin balance. This means profits from one position can offset losses from another, achieving higher capital utilization.
Core Logic
Use the funds from one pool to support all positions.
If forced liquidation is triggered, the maximum loss is limited to the entire margin and position value under that asset.
In extreme market conditions, the entire equity of a certain currency in the account could be lost.
Risk reminder: The advantage of cross margin is capital efficiency, at the cost of chain-reaction risk. If you open positions on multiple trading pairs at the same time, one position being liquidated could drag down the others.
Isolated Margin Mode: Position Isolation, Independent Accounting
In isolated margin mode, the margin for each position is calculated independently.
Core Logic
Each position independently calculates profit and loss, operating on its own.
If a position is liquidated, the maximum loss is limited to the margin allocated to that position, not affecting other positions or the remaining assets in the account.
The risk of each position is locked within the funds you allocate to it.
How to Choose: Quick Reference Table
| Your Situation | Choose | Reason |
|---|---|---|
| Only trading one single currency contract and want to maximize capital utilization | Cross Margin | Margin can be flexibly allocated, reducing the need for additional margin calls |
| Trading multiple trading pairs and worried that a loss in one will affect others | Isolated Margin | A loss is limited to that single trade; other positions remain unaffected |
| New to contract trading, still testing the waters | Isolated Margin | The maximum risk per trade is just your principal, won't exceed the allocated margin |
| Implementing hedging strategies with natural offsetting of profits and losses | Cross Margin | Profits and losses between long and short positions offset each other, cross margin is naturally suited |
| Account holds multiple currency assets | Case by case | If multiple trades in the same settlement currency need shared margin, choose cross margin; if you want to control each trade individually, choose isolated margin |
Practical Differences
When opening a position, under isolated margin the margin you lock at order entry is the maximum loss for that position; under cross margin, the entire available balance of the account could be used to cover losses during a liquidation.
Important Situations to Know
Cross Margin: In extreme market conditions under cross margin, all positions under the same currency could be liquidated at once, resulting in the loss of all equity of that currency.
Isolated Margin: If you want to add margin to avoid liquidation in isolated margin, you can do so independently without affecting other funds in the account.
How to Verify After Operation
When opening a position on the OKX trading panel, select the target mode at the [Cross/Isolated] toggle button, adjust the leverage multiple, and place the order. After opening, go to [Assets] → [Positions] page to check the margin mode indicator for the current position.
