OKX's contract trading supports both Cross Margin and Isolated Margin modes. Cross Margin pools account funds to mitigate risk, while Isolated Margin isolates risks and settles each position independently. Users can freely switch between these modes when no positions are open. It's recommended to choose a suitable mode based on your trading strategy and prioritize preset risk controls.
Key Differences Between Cross Margin and Isolated Margin
When trading contracts on OKX, you'll notice "Cross Margin" and "Isolated Margin" options in the order interface. While these terms may seem straightforward, they significantly impact risk management, liquidation mechanisms, and account security.
What Is Cross Margin Mode?
In Cross Margin mode, all available margin for a contract's currency in your account is used to maintain open positions. For example: If you have 1,000 USDT available and open 1 BTC contract position, the system will automatically use remaining balances to sustain the position during volatile market movements, delaying liquidation.
Advantages:
- Better resistance against short-term volatility
- Higher capital efficiency
Disadvantages:
- Risk spillover: Severe losses in one position may deplete entire account funds
- Less suitable for multi-strategy execution due to inter-position influence
What Is Isolated Margin Mode?
Isolated Margin assigns dedicated margin to each position, ensuring independent settlement without interference between positions. If you allocate 300 USDT margin to a position, the system won't use other account balances to "rescue" it during market fluctuations.
Advantages:
- Isolated risk per position
- Liquidation of one position doesn't affect others
- Ideal for multi-position strategies
Disadvantages:
- Requires manual margin allocation per position
- New traders may struggle to assess precise risk boundaries
How to Switch Between Margin Modes on OKX
Switching modes is intuitive on both web and app platforms:
Steps:
- Log in to your OKX account and navigate to the [Contract Trading] page.
- Select your desired trading pair (e.g., BTC/USDT perpetual).
- Click the "Cross Margin" or "Isolated Margin" button above the order area.
- Confirm your selection in the pop-up window.
Important Notes:
- Close all open positions and pending orders for the contract pair before switching.
- Margin mode settings are independent per trading pair.
- Switching doesn't affect account balance but may alter risk exposure—proceed cautiously.
When to Use Each Margin Mode
Opt for Cross Margin when:
- You have a single position and want pooled funds to withstand volatility.
- Holding medium/long-term trend positions with concentrated capital.
- You understand liquidation mechanics and have clear stop-loss strategies.
Choose Isolated Margin when:
- Running multiple positions requiring risk separation.
- Employing grid or hedging strategies.
- Preventing a single mistake from wiping out your entire account (recommended for beginners).
👉 Master margin modes with OKX's advanced tools
Practical Tips for Margin Mode Selection
- Assess Your Risk Tolerance: Cross Margin amplifies both potential gains and losses, while Isolated Margin offers controlled risk.
- Strategy Alignment: Scalpers often prefer Isolated Margin; swing traders may opt for Cross Margin.
- Account Size: Smaller accounts benefit from Isolated Margin's compartmentalization.
FAQ Section
Q: Can I switch modes frequently?
A: Yes, but you must close all positions and orders for the contract pair each time.
Q: Can I add margin to Isolated Margin positions?
A: Yes—manually allocate additional margin to boost a position's risk capacity.
Q: Does mode switching affect active strategy orders?
A: Yes. Pending orders count as "open positions" and must be canceled before switching.
👉 Optimize your trading with OKX's risk management features
Conclusion
Cross Margin and Isolated Margin represent foundational yet critical risk control options in OKX contract trading. Your choice determines capital allocation logic, risk propagation, and liquidation handling. Always select your preferred mode before opening positions and preset risk parameters. This simple but vital step ensures sustainable trading success. For seamless mode adjustments, use trusted OKX access channels to guarantee secure operations.