Isolated Margin

Isolated Margin is a risk management mode used on trading platforms that allows traders to control the risk of individual positions by setting limits on the amount of margin for each position. This mode provides risk isolation, meaning that losses in one position do not directly affect a trader’s other funds.
Key elements associated with Isolated Margin:
Individual position management: Isolated Margin allows traders to individually manage the risk of each open position. Traders can set separate leverage and margin levels for each position.
Risk Isolation: The main feature of Isolated Margin is risk isolation between positions. This means that losses in one position do not directly affect available funds in other positions.
Margin: Each open position requires a certain amount of margin, which is a hedge against potential losses. Isolated Margin allows you to control this amount for each position independently.
Risk Limitation: Traders can set leverage and margin levels according to their own level of accepted risk. This allows more precise risk management compared to Cross Margin mode.
Protection from the influence of other positions: In the event of sudden price movements, when one position records large losses, other positions with isolated margin are protected and losses are not automatically transferred to their collateral.
Application in different markets: Isolated Margin is used in various financial instruments, including cryptocurrencies, forex, futures and others.
Easier portfolio management: For traders who trade a variety of financial instruments, Isolated Margin makes portfolio management easier, allowing a more flexible approach to each position.
Set Loss Limits: By controlling the margin, traders can set loss limits for each position, allowing them to adjust the risk to their preferences.
Keep in mind that while Isolated Margin offers additional control over risk, traders should still use appropriate risk management strategies, monitor markets and be aware of potential risks.