Dear Bitget users,
In order to improve the users experience,the “Cross-Margin” of Bitget now officially available on 23 July to all users. Bitget contract trading supports cross margin and isolated margin now.
You may select cross or isolated in the new trading page and updated to the latest version of IOS: 0.9.5, the latest version of Android: 0.9.3
*The cross margin mode currently supports BCH/USDT forward contracts and ETH/USD reverse contracts
Comparison of Cross Margin and Isolated Margin
- Cross Margin
Cross-margin trading allows all the available balance in the account to be used as margin, so as to avoid being liquidated.
Any Realised PNL from other positions can aid in adding margin on a losing position, the unrealized profits can be used to open positions to improve funds efficiency.
This margin method is useful for users who are hedging existing positions and also for arbitragers that do not wish to be exposed on one side of the trade in the event of a liquidation.
- Isolated Margin
Isolated margin is the margin placed into a single position, and is isolated from other positions in your zfunding currency account balance.
The maximum amount you would lose from liquidation is the margin you placed on the position, thus allowing you to manage each individual position’s risk better, compared to using the cross-margin method. When using Isolated Margin, you are able to adjust the amount of margin for each position.
Isolated Margin is useful for speculative positions. By isolating the margin the position uses, you can limit your losses to the initial margin set, and thus helps short-term speculative trade ideas that turned out incorrectly. In a volatile market, a highly leveraged position can lose equity quickly.
Optimized of Isolated Margin
The unrealized profit cannot be automatically transferred out and kept in the margin after partial liquidation.
The remaining amount of unrealized profit with sufficient Initial margin and the corresponding margin will transferred out automatically after partial liquidation.
(compared with the previous version, a new balance between liquidity and risk will be achieved )
25 Jul 2020
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