What Is Cross Margin?
Cross margin is a margin mode in leveraged trading where the full balance of the trading account is shared across all open positions. Gains on one position can offset losses on
another, and the entire balance acts as collateral — meaning positions can absorb more adverse price movement before liquidation, but at the cost of exposing the whole account to
liquidation risk.
Cross margin is commonly used by experienced traders running hedged portfolios, market-neutral strategies, or correlated multi-asset positions.
How Does Cross Margin Work?
The trader deposits collateral into the trading account.
Multiple positions are opened — each draws on the shared account balance.
Unrealized P&L from all positions is netted across the account in real time.
A position's liquidation price is calculated using the full remaining account balance, not just an allocated portion.
If the total account equity falls below the maintenance margin for all positions, liquidations cascade.
Cross Margin Example
A trader deposits $10,000 and opens three positions:
Long 1 BTC at $60,000 with 10x leverage
Long 10 ETH at $3,000 with 10x leverage
Short 100 SOL at $150 with 10x leverage
If BTC rises and ETH falls, the gains and losses net against each other. The trader's total account balance is at risk, but positions can absorb more movement before liquidation than
with isolated margin.
Cross Margin vs Isolated Margin
| Feature | Cross Margin | Isolated Margin |
|---|---|---|
| Collateral | Entire account balance | Margin allocated per position |
| Liquidation risk | Full account | Only allocated margin |
| Capital efficiency | High | Lower |
| Best suited for | Hedged portfolios, advanced traders | Single speculative trades |
| Complexity | Higher | Simpler |
Advantages of Cross Margin
Capital efficiency — no need to allocate separate margin to each position
Hedging support — gains on one position automatically offset losses on another
Reduced liquidation risk per trade — each position has more collateral absorbing losses
Risks of Cross Margin
Full account exposure — a single losing trade can drain collateral that was backing other positions
Cascade liquidations — a large adverse move can liquidate multiple positions simultaneously
Less suitable for speculation — high-risk directional trades can wipe out the full balance
When to Use Cross Margin
Running market-neutral strategies (e.g., long BTC / short ETH)
Managing a portfolio of correlated positions
Using capital efficiently across multiple simultaneous trades
Cross Margin and Trust Wallet
Trust Wallet users accessing perpetual futures through Hyperliquid or Aster DEX can choose between cross margin and isolated margin modes directly in the trading interface. Both
platforms support cross margin for users who want to maximize capital efficiency across multiple positions.
