The difference between various margin modes

The Trading Account offers two margin modes: Isolated Margin (IM) and Cross Margin (CM). By default, Trading Account is set to Cross Margin, but you may switch to the margin mode that best aligns with your trading strategy.

Please note that the selected margin mode applies to the entire account—it cannot be set individually for each trading pair.
Below is a comparison of the two margin modes available under Trading Account.

Comparison of Margin Modes

	Isolated Margin	Cross Margin (Default)
User Profile	Derivatives Traders	Derivatives Traders
Supported Products	USDT Perpetual Inverse Perpetual	USDT Perpetual Inverse Perpetual
Criteria Required	No	No
Position Mode	One-way Mode, Hedge Mode (USDT-Perp Only)	One-way Mode, Hedge Mode (USDT-Perp Only)
Margin Rate (Account Based)	Not applicable	Initial Margin Rate, Maintenance Margin Rate
Margin Calculation	Calculated based on individual positions.	Calculated based on individual positions.
Asset Mode	Single-Asset Mode: Only the settlement asset can be used to trade its corresponding contract. For example, USDT can only be used to trade USDT-settled contracts.	Multi-Asset Mode: The collateral required for derivatives trading is converted into its USD value. For example, if you hold BTC, you can use it as collateral, and its corresponding USD value can be used to trade USDT perpetual contracts.
Leverage Settings	Different leverage can be set for long and short positions.	Hedged positions (long and short) must use the same leverage
Liquidation Trigger Criteria	Liquidation is triggered when Mark Price reaches Liquidation Price	Liquidation is triggered when Account Maintenance Margin Rate reaches 100%
Liquidation Price Display (Derivatives)	The Liquidation Price display is the actual liquidation trigger price.	The liquidation price display is an estimate and reference only, as the actual trigger is when Account MMR reaches 100%.
Able to offset P&L of Derivatives Positions?	No	Yes
Able to use unrealized profits from perpetual & futures contract to open new positions?	No	Yes
Support Auto Margin Replenishment	Yes	No
Support Borrowings	No	Yes

Criteria for Switching Between Margin Modes

Switching from Cross Margin to Isolated Margin:

1. Sufficient assets are available to cover the increased margin requirement.

2. No outstanding loans exist.

3. The mark price of the trading pairs for your existing positions or orders must not fall below the liquidation price after switching to Isolated Margin.

4. Adequate assets are allocated to each position to prevent forced liquidation after switching to Isolated Margin.

After successfully switching to Isolated Margin Mode:

• By default, Auto-Add Margin is disabled.
• By default, the Collateral Asset toggle is turned off.

Switching from Isolated Margin to Cross Margin:

• The initial margin ratio must be ≤ 100% after the switch.

After successfully switching to Cross Margin Mode:

• If you hold Inverse Contract positions or orders, the corresponding settlement asset will be enabled as a collateral asset.
• If different leverage settings are applied to existing long and short positions or orders under Isolated Margin, the system will adjust them to use the lower leverage setting after switching to Cross Margin Mode.
• If existing long and short positions or orders are set at different risk limit tiers, the system will adjust their leverage based on the higher risk limit tier after switching to Cross Margin Mode.