Cross vs isolated margin on HedgerX
Isolated margin limits a loss to the margin on one position. Cross margin uses your whole balance in that currency to hold positions, so a liquidation can cost all of it.
What margin is
Margin is the capital that holds a futures position open. The initial margin is the minimum needed to open it. The maintenance margin is the minimum needed to keep it open, and when your balance falls below it, forced liquidation starts.
The two modes
| Isolated margin | Cross margin | |
|---|---|---|
| Margin used | Only what you assign to that position | All available balance in the same currency |
| Extra margin | You must add it by hand | The system adds it from your balance to avoid liquidation |
| Worst loss | The margin of that position | The whole balance in that currency |
| HedgerX’s view | Fits high leverage, because it caps the loss | Fits low leverage or ranging markets, because it improves capital efficiency |
HedgerX’s example
Two users each hold 2,000 USDT and open a 10x BTC long with 1,000 USDT of margin. At the liquidation price the isolated user loses 1,000 USDT and keeps 1,000 USDT. The cross user also loses 1,000 USDT, and the system adds margin from the rest of the balance. If the price rebounds, the cross position may recover. If it keeps falling, the cross user can lose the entire 2,000 USDT.
Liquidation risk
In isolated mode HedgerX measures it as maintenance margin divided by position margin. In cross mode the divisor includes available balance. At 70% HedgerX sends a warning notice, and above 100% it liquidates the position.
Auto margin addition
When enabled, the system adds available margin to a position that is about to be liquidated. Each time it adds an amount equal to the position’s maintenance margin. If your available margin runs short, it first cancels unfilled orders to release margin. The feature works only in isolated mode.
Frequently asked questions
Can I switch margin mode with an open position?
No. HedgerX allows a switch only when you have no open positions or pending orders. Changing the mode does not affect existing positions or orders.
What is the maximum leverage in each mode?
HedgerX states a maximum of 100x for both modes. The limit falls as your position size grows.
Where do I switch the mode?
Tap the Isolated or Cross label at the top of the futures trading screen.
How do I add margin to an isolated position?
Tap the pencil icon on the position and adjust the margin by hand.
Open a HedgerX account
Margin modes matter once you trade futures. If you do, register, secure the account and begin with isolated margin and low leverage, as HedgerX's tutorials advise.
Registration takes a few minutes. HedgerX states that its services are not available in China, Turkey, Kazakhstan and Indonesia. Futures trading can liquidate your position. This page is not financial advice.
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