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  3. Cross Margin and Isolated Margin

Cross Margin and Isolated Margin

To help its users better manage funds, Phemex provides 2 types of margin options.

In Isolated Margin mode, a user’s loss is limited to the initial amount of margin allocated to a position. The remaining funds are isolated from open positions. In other words, any available balance not specifically allocated to a position will not be automatically used to prevent liquidations. However, the Positions Panel still allows users to manually assign more margin to target positions. This helps to prevent liquidations during volatile market scenarios.

In Cross Margin mode, the entire available balance is automatically utilized to prevent liquidations. The funds in your available balance are shared across multiple positions under the same trading account. Users do not need to manually allocate funds to maintain minimum margin requirements. Instead, the Phemex trading system intelligently applies these funds to losing positions. Only when the entire available balance is drained up will a liquidation then trigger. Note that users may end up incurring more losses than the initial margins.

Cross Margin is the default mode of the platform. Users can only choose one margin type for each position. Different positions can have different margin types. In addition, because of Phemex’s powerful sub-account system, users can select different margin types for the same contract positions in different sub-accounts.

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Updated on March 30, 2020

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