In perpetual Futures, cross margin and isolated margin refer to the ways in which users need to pay margin when opening or closing positions.
Cross margin refers to using all assets in the Futures account, including position margin, order margin, and unrealized P&L, as account margin. The advantage is that users' funds are shared, and there's no need to allocate margin separately for different currencies or Futures directions. However, the risk lies in the fact that in the event of liquidation, the entire account's assets and other positions will be liquidated.
Isolated margin means that when a position is opened, the margin injected for this position is only used for this specific position. Therefore, if one position is liquidated, it does not affect other positions, even if they are in different currencies or directions.
Currently, HashKey Global perpetual Futures only support cross margin mode. Isolated margin mode is coming soon.
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