Cross Margin refers to a margin system in which the available margin balance is shared across all open positions in cross margin mode of the same collateral.
- The total equity in your account is considered when calculating margin requirements and liquidation thresholds.
- Profits made on winning positions can help offset losses on losing positions.
- If the total equity falls below the liquidation threshold, all positions may be at risk of liquidation.
Example: If you have multiple positions, the profits from one position can offset the losses from another, providing flexibility but increasing the risk of all positions being liquidated if the total equity falls below the required threshold.