Direct answer
Take the same 10x long of 0.2 BTC entered at 50,000 USDT. In isolated margin with 1,000 USDT, the simplified liquidation price is about 45,248.87 USDT and the most it can lose is 1,000 USDT. In cross margin with 3,000 USDT in the account, liquidation moves out to about 35,193.56 USDT — but a liquidation then takes the whole 3,000 USDT. In cross margin, raising the leverage does not move the liquidation price; it only ties up less margin.
The difference in one table
Isolated margin ring-fences each position's margin, so the position can lose at most what you assigned to it. Cross margin lets the balance in the settlement asset absorb the losses of every position. OKX explains that cross margin in single-currency mode uses that currency's balance, while multi-currency and portfolio modes use the US dollar value of all holdings.
So the real difference between the modes is which money stands behind the position's losses. How far away liquidation is, and how much a liquidation costs, both follow from that.
| Item | Isolated | Cross |
|---|---|---|
| Money absorbing losses | Margin assigned to this position | Account balance in the settlement asset |
| Most a liquidation can cost | This position's margin | The whole account balance |
| Liquidation price | Closer | Usually further away |
| What leverage does | Sets the margin and the liquidation price | With one position, sets only the margin tied up |
| Other positions | Independent | Their profit and loss move each other's liquidation |
One position, two liquidation prices
Take a 10x long of 0.2 BTC bought at 50,000 USDT: a 10,000 USDT position with 1,000 USDT of initial margin, a 0.50% maintenance rate and a 0.05% liquidation-fee reserve. In isolated margin the simplified liquidation price is about 45,248.87 USDT, reached by a 9.50% adverse move.
In cross margin with 3,000 USDT in the account, liquidation moves out to about 35,193.56 USDT, a room of 29.61%. The larger the balance, the further away it is: with 5,000 USDT it is about 25,138.26 USDT.
| Mode and funds | Liquidation (USDT) | Room | Most a liquidation costs |
|---|---|---|---|
| Isolated, 1,000 USDT margin | 45,248.87 | 9.50% | 1,000 USDT |
| Cross, 1,500 USDT balance | 42,735.04 | 14.53% | 1,500 USDT |
| Cross, 3,000 USDT balance | 35,193.56 | 29.61% | 3,000 USDT |
| Cross, 5,000 USDT balance | 25,138.26 | 49.72% | 5,000 USDT |
Why leverage does not move a cross-margin liquidation
With one position in cross margin, the liquidation price depends only on the account balance, the position size and the maintenance margin; leverage does not appear in the formula. Changing the same position from 10x to 20x leaves the estimate at 35,193.56 USDT; what changes is the margin it ties up, from 1,000 USDT to 500 USDT.
Binance's liquidation formula is written the same way: cross mode uses the wallet balance, and only isolated mode uses the margin assigned to the position. So 'lower leverage is safer' is a misunderstanding in cross margin; what pushes liquidation further away is a smaller position or a larger balance.
Several positions in cross margin affect each other
Binance's published cross-margin formula takes the wallet balance, subtracts the maintenance margin of every other contract and adds their unrealized PnL. In other words, when another position is losing, this one's liquidation price moves closer; when another is winning, it moves away.
That is the risk of cross margin: one runaway trade can drag the whole account into liquidation. In cross margin, read every position in the account as one whole.
When to use isolated, when to use cross
To lock in the most a single trade can lose, or to hold several unrelated positions, isolated margin is clearer: each position's risk is written on its own margin. Keeping only the money you are willing to risk on this trade in the account gets a similar result in cross margin, with liquidation further away.
When positions need a shared buffer — opposite positions that hedge each other, say — cross margin keeps one side from being liquidated on its own. Whichever you choose, check the exchange's estimated liquidation price before placing the order.
Switching modes and adjusting margin
On Binance an isolated position's margin can be added or removed directly from the [Positions] tab; cross margin has no such action, because the whole balance already stands behind the position. Binance also states that an open isolated position cannot have its leverage reduced, while a cross position can be adjusted.
The margin mode is usually set before opening; with open positions or orders, exchanges generally do not allow a direct switch, so follow what the interface says at the time.
Official sources
The use of the wallet balance in cross-margin liquidation comes from Binance's liquidation documentation; the rules on adding margin and adjusting leverage from Binance's help pages; and the difference between OKX's single-currency, multi-currency and portfolio modes from OKX's trading guide. Recorded 2026-10-07.
- Binance: How to Adjust Margin Balance in Cross/Isolated Margin Mode
- Binance: How to Calculate Liquidation Price of USDⓈ-M Futures Contracts
- Binance: Leverage and Margin of USDⓈ-M Futures
- OKX: How do I trade perpetual futures on OKX?
- OKX: Futures margin calculation rules
Keep reading
Frequently asked questions
Is cross margin always safer than isolated?
Not necessarily. Its liquidation price is usually further away, but a liquidation takes the whole account balance, and other positions' losses pull it closer. Safety depends on the money you keep in the account, not on the mode.
Can I add margin to an isolated position?
Yes. Adding moves that position's liquidation price further away, but its maximum loss rises to the new margin amount as well.
How is a cross-margin liquidation price worked out?
With one position in the account, substitute the account balance into the formula — which is what the cross mode of the liquidation calculator does. With several positions, other positions' maintenance margin comes off and their unrealized PnL goes in, so rely on the exchange's estimated liquidation price.
Is OKX's cross margin the same as Binance's?
The idea is the same, but OKX has single-currency, multi-currency and portfolio account modes: cross margin in single-currency mode uses only that currency's balance, while multi-currency and portfolio modes use the US dollar value of all holdings.