🔁 Cross vs Isolated Margin (Binance Futures) 1️⃣ Cross Margin Uses your entire futures wallet balance as margin If one trade goes into loss, Binance can use other available funds to avoid liquidation ✅ Lower chance of sudden liquidation ❌ Risk: you can lose more than one trade’s margin Best for: 👉 Experienced traders, hedging, long-term positions
2️⃣ Isolated Margin Uses only the margin you assign to that single trade If the trade fails, loss is limited to that margin only ✅ Better risk control ❌ Higher chance of liquidation if SL is not placed Best for: 👉 Beginners, scalping, intraday trading, challenges (like $5 → $50)
🧠 Simple Example Wallet balance: $100 Trade margin: $10 Isolated: Max loss = $10 Cross: Loss can eat into remaining $90 too
🔑 Pro Tip If you’re doing: Small capital trading 💰 → Use ISOLATED Multiple positions / hedge 🔄 → Use CROSS