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.
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This content is not financial advice and it is not a recommendation to buy or sell any cryptocurrency or engage in any trading or other activities. You must not rely on this content for any financial decisions. Acquiring, trading, and otherwise transacting with cryptocurrency involves significant risks. We strongly advise our readers to conduct their own independent research before engaging in any such activities.
Liquid does not guarantee or imply that any cryptocurrency or activity described in this content is available or legal in any specific reader’s location. It is the reader’s responsibility to know the applicable laws in his or her own country.
