Detailed Explanation
Why It Matters:
Provides strong risk isolation — one bad trade won’t liquidate your entire account. Ideal for testing strategies or high-risk bets.
How It Works:
You choose how much margin to assign when opening the position. Can add/reduce later. Liquidation only affects that position.
Common Mistakes:
Under-allocating margin (early liquidation); forgetting to monitor each isolated position separately.
FAQs
Isolated vs. Cross?
Isolated = ring-fenced risk; Cross = shared margin across all positions (higher overall resilience but total wipeout risk).
Which for beginners?
Isolated — easier to control per-trade risk.
