Glossary
What is isolated margin?
Also called: isolated mode, isolated position margin
Updated Ninja Terminal team
Definition
Isolated margin is a margin mode in which a fixed amount of collateral backs a single position. If the position is liquidated, you lose at most the margin assigned to it, and the rest of your account balance stays untouched. You can usually add or remove margin to move the liquidation price.
In isolated mode each position has its own margin account. Other positions and your free balance do not support it, and they are not affected if it is liquidated.
How does it work?
Example: you have 5,000 USD. You open a 10,000 USD long at 10x isolated. Initial margin is 1,000 USD. The other 4,000 USD stays outside the position. If the price falls until the maintenance margin is breached, you lose the 1,000 USD, not the 4,000 USD.
The trade-off is that the liquidation price is closer to entry than it would be if the whole balance supported the position. Adding margin moves the liquidation price farther away.
What do the venues document?
- Hyperliquid: isolated margin limits an asset’s collateral to that asset, and liquidations there do not affect other isolated or cross positions. Cross margin is the default. Some assets use strict isolated margin, where margin cannot be removed.
- Bybit: the Set Margin Mode endpoint accepts
ISOLATED_MARGIN,REGULAR_MARGIN(cross), andPORTFOLIO_MARGIN. - Other venues: support depends on the account mode and the market. Check your venue.
Where does it appear in Ninja Terminal?
The order form shows the margin mode and leverage of the selected market, and lets you change the mode when the venue allows it. See also cross margin and leverage.
Frequently asked questions
Is isolated margin safer than cross margin?
It limits the loss on one position to the margin assigned to it, but it can be liquidated sooner. Neither mode removes the risk of losing the margin.
Can I switch between isolated and cross margin?
Often yes, but venues can block a change when you have open positions or orders. Check your venue's rules.