MyDex offers both Cross Margin and Isolated Margin modes to support different trading strategies. This article explains the differences between these two modes and how to set them up.
What Is Cross Margin Mode?
In Cross Margin mode, all positions within the same margin account share the same margin balance. When the market becomes highly volatile, the system may use the available balance in your account to support positions until liquidation is triggered.
Key Features of Cross Margin:
➤ Shared Margin Pool: Available funds and unrealized PnL in your account jointly affect the overall margin status, which may help reduce the risk of liquidation caused by short-term market fluctuations.
➤ Higher Capital Efficiency: Margin can be flexibly allocated across multiple positions, reducing the need to frequently add margin because of insufficient margin in a single position.
➤ Linked Overall Risk: Within the same account, the profit and loss of different positions jointly affect the overall margin status. In some cases, this can help buffer short-term fluctuations in a single position.
❗ Important Note: In Cross Margin mode, more of your available margin in the account may be used to maintain positions, so the potential losses may be greater than in Isolated Margin mode.
What Is Isolated Margin Mode?
In Isolated Margin mode, the margin for each position is calculated and managed separately. If one position runs short of margin, only that position may be liquidated, without directly affecting other positions.
Key Features of Isolated Margin:
➤ Risk Isolation: Losses are generally limited to the margin allocated to that specific position and do not directly affect other funds or positions in your account.
➤ Independent Position Control: You can set different margin amounts and leverage levels for different trading opportunities, giving you more precise control.
➤ Customizable Risk Allocation: Based on your own risk tolerance, you can allocate a specific amount of funds to different positions to avoid a single trade having an outsized impact on your overall assets.
❗ Important Note: In Isolated Margin mode, if margin becomes insufficient, only that position will be liquidated, while other positions remain unaffected.
How to Configure Margin Mode
You can choose margin mode before opening a position. Follow the steps below:
Step 1: Go to the Trading Page
Web: Open the MyDex platform, go to [Assets], then click [Perpetual Futures] → [Explore Perpetuals].
App: Open the MyDex app, go to the [Assets] page, and tap [Perpetual Futures] to enter the futures trading page.
Step 2: Select the Margin Mode
Web:
❗ Important Notes
To help protect your assets, please make sure you understand the following rules before trading:
➤ No Switching While a Position Is Open: Once a position has been opened, you cannot change the margin mode for that position directly. If you want to switch modes, you must first close the position and then open a new one.
➤ Order Merging Rules: Orders with the same token, direction, and margin mode may be merged for display and calculation purposes.
➤ Risk Reminder: No matter which mode you choose, futures trading involves risk. New users are advised to use Isolated Margin first so they can manage the risk of each trade more clearly.
Risk Disclaimer
The cryptocurrency market involves substantial risk. Please make sure you understand the risks and only invest in products you are familiar with. Before investing, carefully consider your investment experience, financial situation, investment objectives, and risk tolerance, and consult an independent professional advisor if necessary. The information displayed on this page is for reference only and should not be regarded as investment advice. Past performance is not indicative of future results. Be aware that the market value of investment products and potential returns can fluctuate significantly, and there is a risk of losing your invested capital. You are solely responsible for your own investment decisions, and MyDex shall not be liable for any investment losses that may occur.
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