What is cross margin, and how does it apply to OPUSDT futures?

What is cross margin, and how does it apply to OPUSDT futures?

Blog Article

Cross margin is a margin method used in OPUSDT futures trading, where the entire available balance in a trader’s account is shared across all open positions. This means that if one position incurs a loss, it can draw from the remaining balance in the account to avoid liquidation. Cross margin is particularly useful for traders who hold multiple positions and want to minimize the risk of liquidation by using all their available capital. On platforms like OPUSDT, cross margin allows for more flexibility, as it prevents the automatic closure of a position if the market temporarily moves against it. However, it also increases the risk of losing the entire account balance if several positions go wrong simultaneously. Traders should carefully consider their risk tolerance and the market conditions before choosing between cross margin and isolated margin.