Before you open a futures position, you need to choose a margin mode: isolated or cross. The difference is how much money is used to keep a position open once it starts losing.
Isolated margin
- Each position's risk is limited to the margin assigned to it.
- If the price moves against you and the margin is no longer enough to keep the position open, only that position is liquidated. The rest of the funds in your account are not affected.
- Suited to beginners, one-off trades, or cases where you want to cap your maximum loss at a set amount.
Cross margin
- The available balance in your futures account acts as shared margin for these positions.
- When one position is losing, the account balance is used to top it up, so a single position is less likely to be liquidated. But if the overall risk ratio reaches 100%, all cross margin positions are liquidated, and the account balance is also used to cover the losses.
- On Akunosai, when the cross margin risk ratio reaches 95%, the account's open orders on cross margin contracts are cancelled first to reduce risk.
- Suited to traders who manage several positions at once and can watch the risk ratio closely.
How to switch
On the Akunosai futures order panel you can switch between isolated and cross for each contract. To avoid confusing calculations, you can only switch when that contract has no open position and no open orders.
Summary
If you are not sure which to choose, start with isolated: the loss limit is clear, and the most you can lose is that position's margin. Once you are comfortable, you can consider cross. For how the isolated liquidation price is worked out, see how the liquidation price is calculated.
You can try isolated and cross once each on the futures demo account and watch how the liquidation price changes. You can also sign up for a demo trading contest.