Isolated Margin Accounts

Isolated margin accounts segregate collateral for each individual trade, meaning the risk is contained to the specific amount allocated to that position. If a position hits its liquidation threshold, only the collateral assigned to that specific trade is at risk, while the rest of the user account remains untouched.

This structure provides a clear risk boundary, making it easier for traders to manage exposure to specific assets. It is often preferred by traders who want to experiment with high-leverage strategies without endangering their entire portfolio.

Because the collateral is locked to one trade, the platform does not need to consider other positions when calculating liquidation risk. This simplicity reduces the complexity of margin management but requires the trader to manually top up collateral for each trade if needed.

It is a fundamental tool for controlled speculative trading.