How to Choose a Margin Mode: From Isolated Margin to Portfolio Solutions

Unified Trading Account (UTA) offers a three-tier margin management system tailored to different trading styles. From conservative isolated margin to advanced portfolio margin — each mode is designed with traders’ specific needs in mind. By default, new users receive cross margin, but the platform allows selecting the optimal option based on your trading strategy. It is critically important to remember that the selected mode applies to the entire account immediately — you cannot use different modes for individual trading pairs simultaneously.

Three Approaches to Margin Management in UTA

Each margin mode is based on its own philosophy of collateral management. Understanding the differences between these approaches is key to safe and efficient trading.

The platform provides three options: a mode focused on local risk control; a universal mode for most traders; and a specialized mode for professionals. Each has its advantages in asset management, margin calculation, and liquidation protection.

Isolated Margin: Controlled Risk for Precise Positions

Isolated Margin (IM) is a mode where each trading position operates independently. Collateral is assigned to a specific pair or contract and cannot be redistributed to other positions.

Where this mode is used: This approach is ideal for spot and futures traders who prefer targeted strategies without risk overlap. It supports spot trading, perpetual contracts (USDT and USDC), futures, inverse perpetual contracts, and futures.

Key features: No minimum capital requirement. Each position can have its own leverage level — long and short positions can have different parameters. The system supports both one-way and hedged modes (for USDT contracts). Margin is calculated individually for each position, making calculations transparent and predictable.

Liquidation occurs when the mark price reaches the position’s liquidation price — the displayed liquidation price is an exact trigger price. In this mode, automatic margin top-up works, allowing the system to automatically maintain the required collateral level.

Limitations: Spot margin trading is unavailable. Unrealized profit from one position cannot be used to open other positions. P&L of different positions is not offset. Transfers of capital between positions via loans are not possible.

Cross Margin: Flexible Mode for Most Traders

Cross Margin (CM) is set as the default for new accounts and offers a balanced choice between flexibility and control. In this mode, the entire account balance acts as a single collateral pool, available for all positions and trading pairs.

Wide range of instruments: Supports the full set of trading instruments: spot trading, margin trading on spot, perpetual contracts (USDT and USDC), futures, inverse contracts, and USDC options.

Flexibility in management: All account capital functions as a single reserve. Unrealized profits from perpetual and futures contracts can be used to open new positions, increasing capital efficiency. P&L across different positions is offset, reducing overall portfolio risk. Spot margin trading is enabled by default, and loans are available to top up the balance.

Leverage requirements and margin calculation: The system applies initial margin rate and maintenance margin rate at the account level. Liquidation occurs when maintenance margin reaches 100% — not at a specific price (the displayed liquidation price is approximate). For hedged positions (long and short), the same leverage must be used in hedge mode.

Asset mode — more flexibility: Cross margin supports multi-asset mode. Collateral assets are converted into USD, allowing different assets to be used as collateral for various contract types. For example, BTC can serve as collateral, while its USDT equivalent can be used for USDT perpetual trading.

Portfolio Margin: Professional Risk Management

Portfolio Margin (PM) is designed for qualified traders requiring advanced risk management tools. It requires a minimum net capital of $1000 but offers the most flexible calculation system.

Intended for: Professional derivatives traders working with complex hedging strategies and seeking maximum margin efficiency.

Supported instruments: Includes the full range of assets supported in cross margin: spot, spot margin, USDT and USDC perpetuals, futures, options, and inverse instruments.

Innovative calculation system: The main difference is that margin is calculated based on the risk of the entire portfolio as a whole. The system analyzes the correlation between positions, and if the portfolio is well balanced with hedged positions, the required margin can be significantly reduced. This allows traders to utilize capital more efficiently when assets are lowly correlated.

Functionality matches cross margin: Margin trading on spot, loans, and P&L offset work as in cross margin. Asset mode also supports USD conversion of collateral assets. However, hedging mode is unavailable — only one-sided position mode is supported.

Liquidation occurs when the maintenance margin reaches 100%. Automatic margin top-up is not supported.

Comparative Table of Margin Modes

Switching Rules Between Modes

Switching between margin modes requires meeting specific conditions, which vary depending on the target mode. The system enforces these requirements to protect the account from unexpected liquidation during strategy changes.

Switching to Isolated Margin (from cross or portfolio):

To successfully switch, you must have: no options positions or orders; no spot margin trading orders; sufficient assets to cover increased margin requirements; no current loans; deactivated spot margin trading; the mark price of existing positions must meet new liquidation parameters; assets allocated must be sufficient for each position without risking automatic liquidation.

After a successful switch, spot margin trading remains disabled, auto margin top-up is disabled, and collateral mode is off by default.

Switching to Cross Margin (from isolated or portfolio):

Main condition: initial margin rate after switching must not exceed 100%. The system automatically synchronizes leverage parameters, choosing more conservative values if they differ. If existing risk limits are at different levels, leverage is set to the higher risk level.

After a successful switch, spot margin trading is enabled by default. Inverse contracts will use corresponding assets for collateral.

Switching to Portfolio Margin (from isolated or cross):

Two critical conditions: initial margin rate must not exceed 100%; in hedge mode, open orders and positions are not allowed.

After a successful switch, spot margin trading is enabled automatically, and collateral assets are converted into USD according to portfolio logic.

Which Mode Is Right for You

Choosing the right margin mode depends on your trading style and experience level.

Choose Isolated Margin if: you perform targeted trades without position overlap; prefer full control over each position; want automatic margin support; are new to derivatives and value simplicity.

Cross Margin is suitable if: you trade multiple pairs simultaneously; want more efficient capital use; employ combined spot and derivatives strategies; need spot margin trading.

Portfolio Margin is necessary if: you have over $1000 capital; use complex hedging strategies; require maximum margin optimization; are comfortable with portfolio risk calculations; engage in professional derivatives trading.

Remember, switching between modes is possible at any time, provided technical requirements are met. Many traders start with cross margin and, as their experience grows, transition to specialized modes offering greater control or flexibility.