Cross Margin

By: WEEX|2024/10/24 08:20:46
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Cross margin is a margin trading strategy where the entire available balance in a trader's account is used as collateral for open positions, preventing liquidation. This contrasts with isolated margin, where only the margin allocated to a specific position is at risk. In cross margin mode, if a trade starts to incur losses, funds from the entire account balance are used to cover the shortfall. While this method can reduce the risk of immediate liquidation, it can also lead to greater losses if the market moves against the trader. Cross margin is commonly used in highly liquid markets and by experienced traders to manage multiple positions simultaneously. It carries significant risks and should be used with caution.

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