KuCoin Futures isolated margin vs cross margin

Isolated margin on KuCoin Futures limits risk to the allocated amount per trade, while cross margin uses your entire balance as collateral—ideal for diversified positions but riskier if markets move sharply.

Jul 22, 2025 at 11:21 pm

What Is Isolated Margin in KuCoin Futures?

Isolated margin on KuCoin Futures means that the margin allocated to a specific position is independent from your overall account balance. This setup ensures that losses on one trade will not affect other open positions or your total equity. If a position under isolated margin is liquidated, only the margin assigned to that particular trade is lost—not funds from other positions.

• Navigate to the Futures trading interface on KuCoin
• Select the contract you wish to trade
• Click the margin mode toggle and choose “Isolated”
• Manually input the margin amount you want to allocate to this position
• Confirm the margin assignment before opening the trade
  

  This method gives traders granular control over risk per position, making it ideal for strategies where each trade must be treated separately.

  How Cross Margin Works on KuCoin Futures

  
  Cross margin uses your entire available balance as collateral for all open positions. The system automatically allocates equity across positions to prevent liquidation. If one trade starts losing, the platform pulls from unused margin in your account to keep it alive.
• Go to the Futures trading page
• Select your contract
• Switch the margin mode to “Cross”
• No manual margin input is required—the system uses your total equity
• Monitor your Maintenance Margin Ratio (MMR) closely
  

  Cross margin can help avoid premature liquidations by pooling resources, but it also means that a single losing trade could potentially deplete your whole account if risk management is ignored.

  Key Differences in Risk Exposure
  With isolated margin, your maximum loss per trade is capped at the assigned margin. This creates predictable risk boundaries. For example, if you allocate 10 USDT to a BTC/USDT futures contract, that’s the most you can lose—even if the market moves sharply against you.

• Each position has its own liquidation price based on its allocated margin
• No spillover effect to other trades
• Easier to backtest and simulate outcomes
  

  Cross margin, however, recalculates liquidation prices dynamically based on your total equity. If multiple positions move against you simultaneously, the shared margin pool shrinks, increasing the chance of system-wide liquidation. This makes risk less predictable but potentially more flexible.

  When to Use Isolated Margin Mode

  
  Isolated margin suits traders who want to test strategies individually or limit exposure per trade. It’s especially useful for new traders learning futures mechanics or those running automated bots where each bot handles one position.
• You’re running multiple strategies and don’t want one failure to impact others
• You’re experimenting with high-leverage trades (e.g., 50x or 100x)
• You want to track performance per position without interference from account-wide equity shifts
  

  To switch: open the position settings, click the margin type icon, and select “Isolated”. Then set your desired margin value precisely—no rounding errors allowed.

  When Cross Margin Is the Better Option

  
  Cross margin shines when you hold several correlated positions (like long BTC and long ETH) and want to maximize capital efficiency. It’s also helpful during volatile markets where temporary drawdowns might trigger unnecessary liquidations under isolated mode.
• You’re confident in your overall portfolio diversification
• You prefer automatic margin redistribution to avoid single-position liquidations
• You’re using lower leverage (e.g., 5x–20x) and managing positions actively
  

  To activate: simply toggle to “Cross” before placing the order. No manual margin input is needed—the system auto-adjusts based on your total balance and unrealized P&L.

  Liquidation Mechanics: Isolated vs Cross

  
  In isolated mode, liquidation occurs when the position’s loss equals the allocated margin. For example, with 10 USDT margin and a 5% loss threshold, the position closes when unrealized loss hits 10 USDT.
• Liquidation price is fixed once margin is set
• No automatic top-ups from other funds
  

  In cross margin, liquidation happens when your total equity falls below the Maintenance Margin Requirement (MMR) across all positions. This means a sudden drop in one asset can trigger liquidation of another—even profitable ones—if the combined margin ratio breaches the threshold.

  • Liquidation price recalculates in real time
  • Requires constant monitoring of portfolio-wide health

  ---

  Frequently Asked Questions

  Q: Can I switch between isolated and cross margin after opening a position?
  
  No. Once a position is opened in either mode, you cannot change its margin type. You must close the position first, then reopen it with the desired margin setting.

  Q: Does cross margin increase my leverage automatically?
  
  No. Leverage is set manually per position. Cross margin only changes how margin is sourced—it doesn’t alter the leverage multiplier you select (e.g., 10x, 25x).

  Q: Why did my cross margin position liquidate even though I had funds in my spot wallet?
  
  Only funds in your Futures wallet count toward cross margin. Spot wallet balances are not included unless you manually transfer them to Futures before trading.

  Q: How do I check the liquidation price for an isolated position?
  
  On the position details panel in KuCoin Futures, look for the “Liquidation Price” field. It updates in real time based on your entry price, leverage, and assigned margin.