Cross margin vs isolated margin, what is the difference?

Cross margin vs isolated margin is a choice of how collateral backs leveraged trades. With cross margin, your available balance supports every open position at once. With isolated margin, each position has its own fixed pot of collateral. The choice changes how much of your account a single bad trade can reach.

What is cross margin in crypto trading?

Cross margin treats your account, or a set portfolio within it, as one pool. Coinbase's international derivatives help pages say all funds in the perpetuals portfolio back every cross position, so a losing position can draw on collateral supporting the others. Kraken says it uses cross margin for all spot margin trading on Kraken Pro, where gains in one trade can offset losses in another.

OKX explains the trade-off. Because more balance stands behind each position, the estimated liquidation price may sit further away. But losses on one position can affect your other funds, and more of your balance is exposed.

What is isolated margin?

Isolated margin assigns a chosen amount of collateral to one position. On Coinbase, you pick how much USDC to post, and only that amount is at risk of liquidation. If you add more margin later, that extra money is also at risk. OKX notes the liquidation price is generally closer under isolated mode, because less collateral stands behind the trade.

Some platforms limit mixing. Coinbase says you can only have one margin type open per market at a time. Binance's futures page notes that leverage on an open isolated position cannot be reduced, while cross positions can be adjusted.

What is margin ratio in crypto trading?

Margin ratio compares the collateral you hold with the minimum needed to keep positions open, known as maintenance margin. Binance calculates maintenance margin from position size in tiers, so larger positions carry higher rates. Exchanges express the ratio differently. On Coinbase, a cross position is liquidated when the margin ratio reaches 100%. Kraken instead uses a margin level, equity divided by used margin, where a falling number means rising risk.

What is a margin call in crypto trading?

A margin call is a warning that your collateral is running low. Kraken's support page puts its margin call level at about 80% and its spot margin liquidation level at 40%, with exact thresholds varying with volatility. It may send an email, but says notification is not guaranteed, and it may close positions first in, first out. These figures apply to Kraken as of October 2026 and other exchanges set their own.

What happens after liquidation, and why leverage magnifies losses, is covered in our guide to crypto futures and leverage. For the basics of betting on falling prices, see how shorting crypto works, and for the wider risk picture, read can you lose more than you invest in crypto.