Description of Perpetual Futures Isolated Margin Mode

Overview of Isolated Margin Mode

Isolated margin mode is a margin management approach distinct from cross margin mode, allowing you to set margin individually for each position. Here are the main features and operation methods of isolated margin mode:

Features of Isolated Margin Mode

•Independent Margin

Each position uses a portion of the account balance as margin, isolated from other positions. The set margin only affects that specific position and does not impact other positions or the account balance.

•Risk Isolation

Risks from different positions are isolated. Losses from one position will only consume the margin of that position and will not affect the margin or balance of other positions.

•Flexibility

Different leverage can be selected for each position without interfering with the settings of other positions, allowing for flexible risk management of each position.

•Stop-Loss and Risk Management

Isolating risks for each position allows for more precise stop-loss and take-profit settings, helping to better control the risk of each position.

How to Operate Isolated Margin Mode

1. Select Isolated Margin Mode When Opening a Position

When opening a new perpetual future position, choose isolated margin mode instead of cross margin mode.

2. Set Margin

Set margin individually for each position. Ensure that the margin for each position is sufficient to cover the risk of that position and accommodate potential price fluctuations.

3. Adjust Positions

Regularly check and adjust the margin for each position based on market changes and personal strategies. If the risk of a position increases, you can either increase the margin for that position or close it to reduce risk.

4. Monitor and Manage

Continuously monitor the performance and market conditions of each position during the holding period. Adjust stop-loss, take-profit, and leverage settings as needed. Isolated margin mode allows for individual management of each position’s risk, enhancing risk control capabilities.

Risk Warnings

•Insufficient Margin

If the market movement for a single position is unfavorable, it may lead to the forced liquidation of that position, with losses limited to the margin of that position. However, it is still important to manage the overall account funds to avoid insufficient total account funds due to the accumulation of risks from multiple positions.