What Does Cross Margin and Isolated Margin Mean (What is Cross Margin and Isolated Margin)?

What does cross margin and isolated margin mean? In the fluctuation of Bitcoin prices, traders can choose the cryptocurrency they want to open a long position. However, in the field of cryptocurrency, there are various types of margin contracts, perpetual contracts, and futures contracts.

Among them, cross margin and isolated margin refer to determining investment strategies and conducting risk control based on market changes, while reducing losses through strict take profit and stop loss measures. Specifically, when the market goes up or down, the investment target held by the investor will be converted into Bitcoin. On the other hand, if the price rises and the market becomes completely trapped, the position will increase, resulting in larger losses. (Illustration: Cross Margin and Isolated Margin)

What is Cross Margin and Isolated Margin

Bitcoin broke through $10,000 at the end of 2017 and entered the ranks of the highest historical prices. It is now close to $2 trillion.

So what is cross margin or isolated margin? Why are so many people participating in cryptocurrency investments? This can be explained from the following two aspects: (1) Cross margin refers to investors only allocating funds to one type of asset; (2) Isolated margin refers to investors reducing the quantity of their holdings to convert their investment portfolio into more assets. At the same time, when this happens, it will affect the trends of other markets.