Definition

Isolated Margin

Meaning ⎊ A margin mode where collateral is assigned to a single position, limiting losses to that specific trade amount.
Greeks.liveApril 13, 2026

Isolated Margin

Isolated margin is a risk management feature where a specific amount of collateral is assigned to a single position, keeping it separate from the rest of the account balance. If the position is liquidated, the losses are limited to the collateral assigned to that trade, protecting the rest of the user's funds.

This is in contrast to cross-margin, where the entire account balance is at risk. Isolated margin is highly favored by traders who want to experiment with high leverage on specific trades without risking their entire portfolio.

It provides a granular level of control over risk exposure. However, it also requires the trader to manually monitor each position and add collateral if necessary, as there is no automatic sharing of funds.

It is a powerful tool for disciplined risk management in crypto derivatives.

Capital Allocation
Isolated Margining
Risk Segmentation
Portfolio Margin Systems
Maintenance Margin Threshold
Cross-Margin
Trusted Execution Environments
Margin Engine Latency

Glossary

Cross-Margin versus Isolated Margin

Collateral ⎊ Margin methodologies delineate risk exposure within leveraged positions, fundamentally impacting capital efficiency and potential loss magnitude.

Gamma Margin

Margin ⎊ Gamma margin is a supplementary collateral requirement designed to cover the risk associated with changes in a position's delta.

Isolated Margin Protection

Protection ⎊ Isolated Margin Protection, within cryptocurrency derivatives, represents a risk management strategy specifically designed to safeguard funds allocated to leveraged positions.

Risk-Isolated Pools

Pool ⎊ Risk-Isolated Pools represent a specialized architecture within decentralized finance (DeFi) designed to mitigate counterparty risk in options trading and derivative markets.

Hybrid Margin Models

Model ⎊ Hybrid Margin Models represent a convergence of traditional financial risk management techniques with the unique characteristics of cryptocurrency derivatives and decentralized finance.

Index Price

Calculation ⎊ Index Price, within cryptocurrency derivatives, represents a synthesized, real-time valuation of an underlying asset—typically a cryptocurrency—derived from aggregated price data across multiple exchanges.

Margin Engine Cryptography

Architecture ⎊ Margin Engine Cryptography, within the context of cryptocurrency derivatives, represents a layered system integrating cryptographic protocols with the operational logic of margin calculation and risk management.

Mark Price

Price ⎊ In cryptocurrency and derivatives markets, price represents the quantitative value exchanged for an asset or contract.

Position-Level Margin

Margin ⎊ Position-Level Margin, within cryptocurrency derivatives, represents the collateral requirement specific to an individual position rather than the overall account balance.

Isolated Margin Configuration

Mechanism ⎊ Isolated margin configuration functions as a segregated account structure within cryptocurrency derivatives markets where collateral is strictly tied to a single position.