Traders should choose based on their risk tolerance and trading strategy:
- Cross Margin: Suitable for traders who prefer flexibility and have a high risk tolerance. It’s beneficial if they want to use profits from one position to support other positions but should be cautious of the overall liquidation risk.
- Isolated Margin: Ideal for traders who prioritize risk management and want to limit potential losses to specific trades. It’s beneficial for those who want to keep each trade’s risk separate from the others.