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Bybit Cross vs Isolated Margin Explained (Bybit Futures Margin Modes)

#Cryptocurrency
2025-11-07 12:069 min read

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This video provides a detailed explanation of the difference between cross and isolated margin trading on Bybit. It covers how each margin type impacts trading strategies, with cross margin allowing for broader asset use and potential offsets of losses across trades, whereas isolated margin limits the assets used for specific trades, reducing overall risk exposure. Additionally, the video illustrates how to set margin modes on the Bybit trading platform, demonstrating practical examples of trading Bitcoin and Ethereum under both margin systems. Overall, it aims to equip viewers with a fundamental understanding of margin trading, its implications, and how to effectively manage their trading accounts.

Key Information

  • The video explains the difference between cross and isolated margin in Bybit futures trading.
  • Cross margin uses the entire account's margin for multiple trades, allowing for greater flexibility but increasing risk if one trade loses.
  • Isolated margin requires that each position's margin be set and calculated individually, protecting other trades from being affected if one position is liquidated.
  • For isolated margin, only assets related to the specific trade settlement pairs can be used as collateral.
  • Both margin types can utilize various cryptocurrencies as collateral, but the selection of assets and their handling varies between the two.
  • Cross margin allows for trading and hedging strategies that can offset losses from other trades, whereas isolated margin limits each trade's collateral to its own margin.
  • Choosing the right margin mode significantly impacts trading strategies and risk management in futures trading.

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Related questions&answers

What is the difference between cross and isolated margin in Bybit futures?

Cross margin allows all assets in the account to be used as collateral for margin trading, while isolated margin limits the collateral to a specific trade, protecting other trades from being affected by one individual trade's losses.

How can I choose my margin mode on Bybit?

To choose your margin mode on Bybit, go to the top right corner of the trading platform, click on the settings for margin mode, and select either cross or isolated margin.

What types of assets can be used as margin with isolated margin mode?

With isolated margin, you can only use the assets that are part of the trading pairs you are using, such as USDT for trading Bitcoin against USDT.

What are the advantages of using isolated margin?

Isolated margin is beneficial for managing risk, as it isolates each trade's margin, meaning that losses from one trade do not impact others, and allows more control over individual positions.

What strategies can be utilized with cross margin?

Cross margin allows for more advanced trading strategies, including hedging across multiple positions and using profits from one position to offset losses in another.

What happens if a trade gets liquidated in isolated margin mode?

If a trade gets liquidated in isolated margin mode, only the margin allocated to that specific trade is lost, and other positions' margins remain unaffected.

Can I use profits from one trade to margin another in cross margin mode?

Yes, in cross margin mode, profits from one trade can help cover losses in another, providing a more flexible and interconnected trading strategy.

Is cross margin more suitable for beginners or professionals?

Cross margin is typically more suitable for professional traders due to its complex risk management and margin usage, while isolated margin is often preferred by beginners for its simplicity.

Can I change margin types after opening a position?

No, once a position is opened with a specific margin type, you cannot change the margin mode for that position; any changes to margin settings apply only to new positions.

What factors should I consider when choosing between cross and isolated margin?

You should consider your risk tolerance, trading strategy, and whether you want to manage trades individually or more broadly across your entire account when choosing between margin types.

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