If you're starting to trade futures on Binance, you've likely encountered two options: cross margin and isolated margin. Choosing the right one can be the difference between protecting your capital or liquidating your entire account. Here's a clear and easy explanation.
🧩 What are Futures?
Futures on Binance allow you to trade with leverage, meaning with more money than you actually have, to obtain greater profits (but also greater risk).
But before entering a trade, you must choose whether to use cross margin or isolated margin.
⚖️ Isolated Margin
🔸 Definition: Only the margin you put in that trade is used.
🔸 If the trade goes wrong: You only lose the capital assigned to that position, no more.
🔸 Risk control: High
🔸 Recommended for: Beginners, risky trades, and loss control.
Example:
You put $100 in an isolated trade with x10 leverage. If the position gets liquidated, you'll only lose that $100, and it won't affect the rest of your account.
🌐 Cross Margin
🔸 Definition: Your entire futures account is available to cover losses.
🔸 If the trade goes wrong: Binance will use available balance in your account to avoid liquidation.
🔸 Risk control: Low
🔸 Recommended for: Experienced traders who know how to manage risk from multiple open positions at the same time.
Example:
You have $500 in your account and open a $100 trade on cross margin. If the market goes against you, Binance could use the rest of your $400 to keep the trade alive and avoid liquidation… but if it keeps dropping, you could lose everything.
🧠 Quick conclusion:
Are you a beginner? → Use isolated margin
Are you going to trade with high leverage? → Use isolated
Do you have experience managing multiple trades? → You might consider cross margin
💡 Practical tip:
Start with isolated, study patterns, and enter with low leverage. Practice in testnet mode or with small amounts. Remember that leverage amplifies both gains and losses.
#FuturosBinance #EducaciónFinanciera
