MoonXBT provides two margin modes: isolated margin and cross margin.
In this mode, your liability is limited to your initial allocated margin. The system will not add any available balance to your position to prevent liquidation.
An isolated Margin is useful for speculative positions. By isolating the margin, you can limit your losses to the initial margin, helping protect yourself from incorrect short-term speculation. In a volatile market, a highly leveraged position can lose equity quickly.
For example, a 50x position liquidates after a 2% move against you.
When using an Isolated Margin, you can adjust your leverage on the fly via the leverage slider.
Also known as “Spread Margin”, cross margin can access the entire amount of funds in the available balance of the cryptocurrency asset in the position to prevent liquidations.
Cross margin is helpful for users who are hedging existing positions and arbitrage trades that do not want exposure to one side of the trade in the event of a liquidation.
Note that Cross Margin is the default for all positions.