Differences Between Isolated Margin and Cross Margin

Before starting, you may learn more about KuCoin Margin trading by the video below 👇

1. Margin in Isolated Margin mode is independent for each trading pair 

• Each trading pair has an independent Isolated Margin Account. Only specific cryptocurrencies can be transferred in, held, and borrowed in a specific Isolated Margin Account. For instance, in the BTC/USDT Isolated Margin Account, only BTC and USDT are accessible. 

• Margin level is calculated solely in each Isolated Margin Account based on the asset and debt in the isolated. When the positions of the isolated margin account need to be adjusted, you can only operate in each trading pair independently. 

• Risk is isolated in each Isolated Margin Account. Once liquidation happens, it will not affect other isolated positions. 

2. Margin in cross margin mode is shared among the user’s Margin Account 

• Each user can only open one cross margin account, and all trading pairs are available in this account. Assets in cross margin account are shared by all positions;

• Margin level is calculated according to total asset value and debt in the Cross Margin Account. 

• The system will check the margin level of the Cross Margin Account and notify users about supplying additional margin or closing positions. Once liquidation happens, all positions will be liquidated.