New traders starting margin trading always ask the same question: in which mode should I open a position?

Most people make mistakes and suffer unnecessary losses before learning this.
Today, I want to explain in detail what isolated margin is and how it works because this choice is really important.

Let's go through a simple scenario.
Suppose you have $200 in your futures wallet.
Coin X is trading at $1,000, and you want to open a position with $100 using 10x leverage.
What happens if you do this in isolated margin mode?
The position size becomes 1 coin, meaning you open a position worth $1,000.
But be careful, you are only risking that $100.
The remaining $100 in your wallet is unaffected.

At this point, the answer to the question "What is isolated margin?" becomes clear:
Each of your positions carries its own isolated risk.
If Coin X drops 10% and falls to $900, you lose $100 and the position gets liquidated.
But do you know the nice part here?
Your remaining $100 in your wallet is protected.
Even if there is sudden news or a shock event, you won't lose your entire balance.

What if you opened the same position in cross margin mode?
This time, the liquidation level would drop to $800.
Why? Because in cross mode, your entire wallet balance is at risk.
All $200 are backing the position.
The advantage is this:
If Coin X drops from $1,000 to $850 and then rises back to $1,100, you won't get liquidated.
Using cross margin gives you a larger buffer.
But the risk also doubles.

In conclusion, both modes have their own advantages and disadvantages.
Isolated margin is safer and more controlled, even though the risk of liquidation is closer.
Cross margin is riskier but offers a higher chance to avoid liquidation.
If you want to move your isolated position's liquidation level further away, you can add more collateral by pressing the "add margin" button in the position details.

One more thing:
In isolated mode, each position works independently.
If one suffers a loss, the others are unaffected.
But in cross mode, positions influence each other.
In profit and loss situations, your entire balance is affected.

If you want to make money from trading, you need to understand these differences well.
Which mode you choose depends entirely on your risk tolerance and strategy.