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

Cross Margin:

• Definition: All your available balance in the futures account is shared across all positions.
• Risk Management: If one position faces a loss, your other positions can help cover it to avoid liquidation.
• Use Case: Good for experienced traders who want to maximize capital efficiency.

Isolated Margin:

• Definition: Each position has its own margin. Losses in one position won't affect others.
• Risk Management: You can control the exact amount of margin allocated to each position.

Use Case: Ideal for beginners or those who want to limit risk to individual positions.