The margin balance allotted to a certain position is known as the isolated margin. By limiting the amount of margin allotted to each position, traders using the isolated margin mode can control the risk associated with each of their unique positions. Each position's allocated margin balance can be changed separately. When a trader liquidates a position in Isolated Margin mode, just the Isolated Margin balance is liquidated, not their full margin balance. For illustration, suppose Alice opens a long trade with 10x leverage in ETH valued at 5000 USD. She has a 10000 USD margin balance, but she only wants to risk a fraction of it on one trade. She chooses a 500 USD Isolated Margin for the position. She won't lose more than $500 USD in the event that her position is liquidated. For open positions, the Isolated Margin amount can be changed. The liquidation of a trade-in Isolated Margin mode can be stopped if there is still time to add more margin to the position. On the other side, when a position has been opened, it is not possible to change the related margin method. Before taking a position, it is strongly encouraged to examine the margin mode settings. Cross Margin is yet another popular margin mechanism on trading platforms. To prevent liquidation, the whole margin balance is distributed among all open positions when using cross-margin mode. In the case of a liquidation, if Cross Margin is enabled, the trader runs the risk of losing both their entire margin balance and any open positions. Any realized PnL from a position that is close to being liquidated can help a losing position. Cross Margin is typically the default setting on most trading platforms because it is the simpler strategy ideal for new traders. Isolated Margin, however, can also be helpful for riskier trades that demand stringent downside restrictions.