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What is Isolated Margin ?

Isolated Margin is a margin trading mode offered by platforms like #gateio that allows you to allocate a specific amount of funds to each individual trading position. Unlike Cross Margin, Isolated Margin isolates the margin and risk of each position from one another.

With Isolated Margin, you can assign a certain amount of margin to a particular trading #pair or position. This means that the funds you allocate to one position are not shared or used to support other positions in your margin account. It provides a higher level of risk management by limiting the potential losses to the specific position's #allocated margin.

The advantage of Isolated Margin is that it allows you to control and manage the risk for each position separately. If a particular position performs poorly and incurs losses, it does not impact the margin or funds allocated to other #positions. This feature helps to prevent the liquidation of your entire account due to a single position's adverse movement.

However, it's important to note that Isolated #Margin also limits the buying power and leverage available for each individual position. The allocated margin determines the maximum position size and leverage you can utilize. It requires careful risk assessment and monitoring of individual positions to avoid #liquidation or excessive losses.