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.
Cross Margin vs. Isolated Margin
| Cross Margin | Isolated Margin |
|---|
| Margin pool | All positions share the account’s available balance | Each position has its own dedicated margin |
| Risk scope | A loss on one position reduces margin available to all others | Losses are capped at the margin assigned to that position |
| Liquidation impact | Can trigger account-wide liquidation | Only the single isolated position is liquidated |
| Profit offset | Profitable positions automatically offset losing ones | No offset between positions |
How Isolated Margin Works
Per-symbol configuration
You set the margin mode on a per-symbol basis. For example, you might use Cross Margin for BTC-PERP and Isolated Margin for ETH-PERP. There is no account-wide toggle — each trading pair is configured independently.
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).
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.
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.
When to Use Isolated Margin
| Scenario | Why Isolated Margin helps |
|---|
| High-leverage speculation | Cap your maximum loss without putting your core positions at risk |
| Multi-strategy trading | Run different strategies on different pairs with no risk bleed-through |
| Experimental trades | Test a thesis on a volatile asset without exposing your whole account |
| Defined-risk setups | Know exactly how much you can lose before you enter the trade |
Default Behavior
All symbols default to Cross Margin unless you explicitly switch them to Isolated. If you have never changed your margin mode, your experience is unchanged — existing positions and orders continue to work exactly as before.
Switching a symbol’s margin mode is only possible when you have no open positions or pending orders on that symbol in the current mode.
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