Which margin type, cross or isolated, is more suitable for beginners in the world of digital currencies?

1 answers

• Sounak DasFeb 23, 2025 · 5 months ago
  When it comes to margin trading in the world of digital currencies, beginners should consider their risk tolerance and trading goals before choosing between cross and isolated margin. Cross margin allows you to use your entire account balance as collateral, which can be advantageous if you want to maximize your trading potential. However, it also exposes you to higher risks, as losses in one position can affect your entire account balance. Isolated margin, on the other hand, allows you to allocate a specific amount of your account balance to each trade, reducing the risk of liquidation. This can be a more suitable option for beginners who want to limit their exposure and manage their risks more effectively. Ultimately, the choice between cross and isolated margin depends on your individual trading style and risk appetite.
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