We are constantly working to refine and improve our trading services on Liquid. Consequently, we have added another degree of control for leverage traders.
Until now all margin positions on Liquid have utilized Cross Margin, which means that margin is shared between open positions.
With Cross Margin, a position is backed by the total account balance to avoid liquidation when needed.
Cross Margin is great for reducing risk of liquidation, but it’s not for all traders.
We have now introduced the option to use Isolated Margin, providing traders the opportunity to choose the margin type that suits them on a trade-by-trade basis.
What is Isolated Margin?
Isolated Margin assigns a margin amount to your position, which is then restricted only to the assigned amount of margin. With Isolated Margin, you have precise control over exactly how much capital is exposed to the position. If the margin falls below the maintenance margin level, the position will be liquidated.
Your available balance would NOT be automatically added to your existing isolated positions.
Isolated Margin is a great enhancement to our current offering for leverage traders in volatile markets like cryptocurrency.
Due to the volatility of cryptocurrency markets, highly leveraged positions can rapidly change. For speculative positions, Isolated Margin mode may be a safer bet.
You can get the full lowdown on Isolate Margin and Cross Margin in the Liquid Help Center.
This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.
