Futures Trading (Cross vs Isolated Margin)

adaseb

legendary

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Quote from: pawanjain on December 23, 2021, 11:13:43 AM

For me, I like cross margin better than Isolated margin because that way I can lose all of my money at once instead of losing them at different times in Isolated margin.
At the end, we just lose money in margin trading and I have seen little to nobody who has made profits in the long term trading in futures.

Both Cross and Isolated have their pros and cons. If you want to play safer then Isolated is a better option since you can rethink of a better strategy for the rest of your trades.

LOL your first paragraph is hilarious. I sense some sarcasm there.

Generally you should only use isolated especially since you are trading many alt pairs. If you are only trading BTC or ETH then generally you can get away with cross.

However you shouldn’t use cross if you got multiple high leverage positions opened on many alts because a simple liquidation cascade can make you lose the entire account.

pawanjain

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Nothing lasts forever

For me, I like cross margin better than Isolated margin because that way I can lose all of my money at once instead of losing them at different times in Isolated margin.
At the end, we just lose money in margin trading and I have seen little to nobody who has made profits in the long term trading in futures.

Both Cross and Isolated have their pros and cons. If you want to play safer then Isolated is a better option since you can rethink of a better strategy for the rest of your trades.

Ararbermas

sr. member

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Binance futures is so easy to understand, and its okay for me than using spot because through on it you can easily make good profits using leverage, it doesn't matter if there's a liquidation as well as long as you always set the best ratio when it comes to it probably there's no problem. Especially if you're sure that you're in a good coin because it's always a good idea to trade with future.

tbct_mt2

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Quote from: GreatArkansas on December 23, 2021, 06:48:50 AM

For example, in Binance there is a Cross/Isolated margin;

If cross, your balance in your future wallet will be used all and possible to liquidate.

If isolated margin, only the amount you set when opening your trade will be liquidated.

And on Binance, you can only use USDT to deposit in USD-M.

On the other side, FTX Exchange which got a sub-accounts feature if you want to isolate your fund and you will transfer a fund to a particular sub-account if you only want specific funds to liquidate since FTX is using cross margin and the same leverage per sub-account

So they serve the same: Isolated collateral or sub-account because liquidation will be on the collateral you use for your trade.

In my opinion, sub-account is better because your capital will be in different accounts and it takes more time to move funds between main and sub accounts if you want to do something with margin calls.

My preference goes to FTX and sub-account because of better safety for my money. However, I don't like the UI of FTX.

AicecreaME

sr. member

Activity: 2436

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Quote from: GreatArkansas on December 23, 2021, 06:48:50 AM

I want to ask which is your much prefer the platform to use when trading futures?

There are some trading platforms that you only need collateral (could be any cryptocurrency) and you can trade in futures without having particular pair like USDC/USDT.

For example, in Binance there is a Cross/Isolated margin;

If cross, your balance in your future wallet will be used all and possible to liquidate.

If isolated margin, only the amount you set when opening your trade will be liquidated.

And on Binance, you can only use USDT to deposit in USD-M.

On the other side, FTX Exchange which got a sub-accounts feature if you want to isolate your fund and you will transfer a fund to a particular sub-account if you only want specific funds to liquidate since FTX is using cross margin and the same leverage per sub-account.

So, for you? Which is much better if you already tried to use this kind of feature trading futures?
Sub-accounts or Binance like trading futures?

I'll go for Binance futures since it's easier for me to use, also I know Binance much more than FTX, of course as a trader, I want to trade with assurance that my funds are safe even when I'm sleeping. Cross margin is only good if you have a lot of USDT and isolated margin is only good if you only have few, that's the simplest way to explain it. Either way, every traders should always be careful on the trades they are gonna make to avoid liquidation as much as possible.

GreatArkansas

legendary

Activity: 2506

Merit: 1394

I want to ask which is your much prefer the platform to use when trading futures?

There are some trading platforms that you only need collateral (could be any cryptocurrency) and you can trade in futures without having particular pair like USDC/USDT.

For example, in Binance there is a Cross/Isolated margin;

If cross, your balance in your future wallet will be used all and possible to liquidate.

If isolated margin, only the amount you set when opening your trade will be liquidated.

And on Binance, you can only use USDT to deposit in USD-M.

On the other side, FTX Exchange which got a sub-accounts feature if you want to isolate your fund and you will transfer a fund to a particular sub-account if you only want specific funds to liquidate since FTX is using cross margin and the same leverage per sub-account.

So, for you? Which is much better if you already tried to use this kind of feature trading futures?
Sub-accounts or Binance like trading futures?

Topic: Futures Trading (Cross vs Isolated Margin) (Read 90 times)