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Orderly supports two margin modes for perpetual futures: Cross Margin and Isolated Margin. Cross Margin is the default and shares your entire account balance across all positions. Isolated Margin lets you allocate a fixed amount of margin to a single position, capping your maximum loss to that amount. This page explains how Isolated Margin works, how it differs from Cross Margin, and when to use each mode.

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Cross Margin vs. Isolated Margin

Cross MarginIsolated Margin
Margin poolAll positions share the account’s available balanceEach position has its own dedicated margin
Risk scopeA loss on one position reduces margin available to all othersLosses are capped at the margin assigned to that position
Liquidation impactCan trigger account-wide liquidationOnly the single isolated position is liquidated
Profit offsetProfitable positions automatically offset losing onesNo offset between positions
In short, Cross Margin is more capital-efficient because your collateral backs everything at once. Isolated Margin gives you tighter control over how much you can lose on any single trade.

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How Isolated Margin Works

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Both modes work simultaneously

Cross Margin and Isolated Margin are not mutually exclusive — both modes are supported at the same time. You specify the margin mode when placing each order, so you can use Cross Margin for some trades and Isolated Margin for others on any symbol, without needing to switch modes.

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Independent leverage

Each symbol can have different leverage settings under each margin mode. For example:
  • BTC-PERP Cross: 10x
  • BTC-PERP Isolated: 20x
  • ETH-PERP Isolated: 5x
The leverage you set in Isolated mode determines how much margin is required for that position. Higher leverage means less margin allocated (and a tighter liquidation price).

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Dual positions on the same symbol

You can hold both a Cross position and an Isolated position on the same symbol at the same time. For example, you could open a Cross long and an Isolated short on ETH-PERP simultaneously. Each position has its own margin calculation and liquidation price — they are completely independent.

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Risk isolation

If an Isolated position is liquidated, only the margin assigned to that position is lost. Your other positions and your account balance remain untouched. This is the core benefit of Isolated Margin: your worst-case loss on any single trade is known upfront.

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When to Use Isolated Margin

ScenarioWhy Isolated Margin helps
High-leverage speculationCap your maximum loss without putting your core positions at risk
Multi-strategy tradingRun different strategies on different pairs with no risk bleed-through
Experimental tradesTest a thesis on a volatile asset without exposing your whole account
Defined-risk setupsKnow exactly how much you can lose before you enter the trade

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Default Behavior

All symbols default to Cross Margin. When you place an order without specifying a margin_mode, the symbol’s default margin mode is used. You can change a symbol’s default display mode, but this only affects the frontend default — it does not prevent you from using either mode at any time.