Cross Margin

Cross margin is a margin trading mode where your entire available account balance serves as collateral for all open positions. All positions share the same margin pool, which means profits from one position can prevent liquidation of another.

How Cross Margin Works

In cross margin mode:

• All funds in your margin account back all positions
• Profits from winning trades offset losses from losing trades
• Liquidation occurs only when your total account equity falls below the combined maintenance margin
• Your entire balance is at risk if positions go badly wrong

Example:

• Account balance: $10,000
• Position A (BTC Long): Using $3,000 margin
• Position B (ETH Short): Using $2,000 margin
• Remaining balance: $5,000

If Position A loses $4,000, the extra $5,000 in your account prevents liquidation. Your total equity is $6,000, which may still be above the maintenance margin for both positions combined.

Cross Margin vs Isolated Margin

When to Use Cross Margin

• Hedging: When you have opposing positions that offset risk
• Multiple correlated positions: When positions are likely to move together
• Experienced traders: Who can manage overall portfolio risk
• Lower leverage: When using conservative leverage levels

When NOT to Use Cross Margin

• High leverage trading: Risk of losing entire account
• Experimental trades: When testing new strategies
• Beginners: Until you understand portfolio risk management
• Volatile markets: When unexpected moves could wipe your account

Cross Margin on Major Exchanges

• Binance: Cross margin across USDT-M futures
• Bybit: Unified cross margin account
• OKX: Multi-currency cross margin mode
• Kraken: Cross margin for spot margin trading