Glossary
Isolated Margin
A margin mode where each position has its own dedicated collateral — a loss is capped at that position's collateral and cannot drain the rest of the account.
In isolated margin, the trader assigns a specific amount of collateral to a specific position. If the position is liquidated, only that allocated collateral is lost; the rest of the account balance remains untouched.
The mode is the natural fit for high-leverage, high-risk positions where the trader wants to cap downside per trade. The trade-off is capital efficiency — collateral siloed in one position cannot backstop adverse moves in another.