- Cross Margin:
- Shares available margin across all positions.
- Profits in one position can compensate for losses in others.
- Flexible but carries the risk of all positions being liquidated if the total equity falls below the threshold.
- Isolated Margin:
- Allocates a specific margin to each position.
- Risk is contained to each individual trade.
- Provides better risk containment but requires careful management of each position’s margin.
What are the main differences between Cross Margin and Isolated Margin?
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