Cross Margin Mode
Cross margin mode is a risk management setting where the entire balance of the account is available as collateral for all open positions. If one position incurs a loss, the gains from other positions or the remaining cash balance can be used to prevent liquidation.
This mode provides greater flexibility and prevents premature liquidations caused by temporary volatility in a single asset. However, it also carries the risk that a single losing position could lead to the liquidation of the entire account portfolio.
It is favored by traders who manage multiple correlated or hedging positions.