How to Switch Between Cross Margin and Isolated Margin in Crypto Futures

Managing risk effectively is one of the most important skills in derivatives trading, especially when using leverage. Two of the most common margin modes futures traders rely on are Cross Margin and Isolated Margin. Knowing how to switch between these modes — and when to use each — can significantly impact your liquidation risk, capital efficiency, and overall trading strategy.

This guide explains how to change your margin mode step-by-step, the differences between Cross and Isolated Margin, and essential limitations you need to understand before switching.

Switching margin modes only takes a few seconds — but it must be done before opening any order or entering any position.

Follow the steps below:

Step 1: Open the Futures Trading Interface

Navigate to the Futures Trading page on your exchange.
Look at the top-right corner of the trading panel, where you’ll see the current margin mode displayed (e.g., “Cross”).

Click on the label to open the margin options.

Step 2: Select Your Desired Margin Mode

A confirmation window will appear, showing the available margin modes:

• Cross Margin

• Isolated Margin

Choose the mode you want, then click [Confirm].

At this stage, the change applies only to the selected contract — not universally across all contracts.

Step 3: Repeat If You Need To Switch Again

You can repeat these steps anytime, as long as:

• You have no active positions

• You have no open orders

Once a position is active, margin mode becomes locked to prevent unexpected risk changes.

Important Notes Before Switching Margin Modes

Margin mode rules vary depending on asset type and contract class. Be sure to review the following requirements:

1. Margin Mode Defaults to Cross

All futures contracts start in Cross Margin by default. You must manually switch to Isolated if you prefer tighter position-level control.

2. Switching Applies Only to the Selected Contract

Changing margin mode for BTCUSDT perpetual contracts, for example, does not affect ETHUSDT or other futures markets.

3. You Cannot Switch Modes With an Open Position

If you already have:

• A long or short position

• A pending order

… you must close or cancel them first before the exchange allows you to switch margin mode.

4. Cross Margin Shares Collateral Only Within the Same Asset Category

This is one of the most commonly misunderstood rules.

For USDⓈ-M Futures

• All USDC margin can support all USDC-margined contracts

For COIN-M Futures

• All BTC collateral can support all BTC-settled contracts, including:

  • BTC perpetual contracts

  • BTC delivery (quarterly) contracts

There is no cross-asset sharing. USDT cannot support BTC-M contracts, and vice versa.

When Should You Use Each Margin Mode?

If you're unsure which mode to use, here’s a quick guide:

Choose Cross Margin If You:

• Trade with multiple positions in the same asset

• Prefer maximum capital efficiency

• Have experience managing leveraged portfolios

• Want a lower chance of liquidation via shared collateral

Choose Isolated Margin If You:

• Are a beginner

• Want strict risk control

• Trade single, high-leverage positions

• Test short-term strategies or volatile assets

Conclusion: Margin Mode Matters for Professional Futures Trading

Switching between Cross Margin and Isolated Margin is simple, but choosing the right mode is what impacts your long-term success in futures trading. Always confirm your preferred margin mode before submitting any order to avoid unnecessary risk or liquidation exposure.

As crypto derivatives markets continue evolving, exchanges are improving margin systems to give traders more flexibility and better risk management tools. Understanding these systems now gives you a strong advantage in navigating volatility and building a more sophisticated futures strategy.

Disclaimer

Cryptocurrencies are subject to high market risk and volatility despite high growth potential. Users are strongly advised to do their research as they invest at their own risk. Thank you for supporting BITGP!

BITGP is a trading platform within the Bitget ecosystem, focused on the Southeast Asian market including Vietnam. The exchange leverages Bitget’s infrastructure, liquidity, and User Protection Fund to deliver a secure and reliable trading experience for investors.

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