Margin Modes

RateX offers two margin modes for traders to choose from: Isolated Margin and Cross Margin. These modes cater to different risk management strategies and trading preferences.

Isolated Margin

In the Isolated Margin mode, a trader's losses are strictly limited to the initial margin specifically allocated to a given trading position. This margin functions as a designated collateral solely for that position, while any unallocated funds remain segregated and are not automatically drawn upon to cover potential losses. Essentially, this mode ensures that only the pre-set margin is exposed to risk, thus providing traders with enhanced control over their risk exposure. Nonetheless, traders retain the option to manually increase the margin on a position if they desire additional protection against liquidation during periods of market volatility.

Cross Margin(Coming Soon...)

The Cross Margin mode on RateX adopts a comprehensive approach to collateral management. In this mode, the entire available balance is dynamically allocated across multiple positions within a single Cross Margin trading account. This mode provides traders with a safety net, as it utilizes the collective balance to prevent liquidation events. However, it's crucial to note that while Cross Margin can reduce the immediate risk of liquidation, when liquidation is triggered, traders may lose their entire deposited margin.