Introducing Isolated Margin for Futures Trading

What is Isolated Margin?

 

We heard your requests, and now it’s finally here! 

Isolated margin mode for individual futures contracts is now available; users just have to upgrade to the new Unified Futures Wallet to start using it. 

Now, margins for each futures contract can be separated as independent positions. With this, liquidation risk can be reduced to impact only the collateral for a specific futures position. 

 

Below is a brief overview of the benefits.

 

Benefits of Isolated Margin

 

• Minimize Losses:
  • When a forced liquidation occurs, the maximum loss of margin will be limited to the margin initially deposited for that specific position, versus cross margin trading, where the entire wallet is affected.
    

 

• Flexibility & Precision: 
  • Traders have greater flexibility now to set multiple positions, with your desired leverage and with less downsides.
  • Isolated margin mode also lets traders add or reduce margins after they have opened positions. This provides traders with the ability to change margin maintenance ratios.

 

• Additional Modes for each Futures Contract Market
  • With isolated margin mode, you’ll be able to toggle new modes for each futures contract market. Previously, traders could only trade under one way mode, in which they could only take on long or short positions for each contract.
    

• • Hedge Mode:
    • Long and short positions can be held in a particular market simultaneously. Margins are separated for direction as well as leverage, providing greater customizability and managing risk according to your preferences.
      

• • Multiple Mode:
    • As the title states, a trader can have multiple long and short positions for a specific market, with each position having its own particular specifications. With each entry price being independent, this helps with greater flexibility. As of now, a single market can have five positions. 

 

How to Toggle on Isolated Margins

In this article, we will walk you through the steps to set up multiple futures positions with isolated margins, under Multiple Mode.

1. First, upgrade your wallet to the unified futures wallet. Please read the details carefully and check if all conditions are met before upgrading.

2. Toggle on isolated mode.

Navigate to the “Futures” category. Search for a contract you would like to buy. Then, on the top right, click the “Cross” toggle button on the order panel. Select “Isolated Margin Mode,” and click confirm. 

Congratulations, you are now in Isolated Margin Mode for this contract!

 

Increasing Margin for an Existing Futures Position

Below is a snapshot of an existing Bitcoin futures contract. In the second screenshot, we increase the margin from 165 USDT to 18,611 USDT, bringing the risk of liquidation to nearly zero.

To learn more about how to run multiple futures positions, click here. 

 

 

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Note: BTSE blog content is intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.