Three margin modes on a Unified Trading Account: how to choose the optimal one for your strategy

If you are a trader on the Gate.io platform, you have likely noticed that ETA offers several margin management options. At first glance, this may seem complicated, but in reality, each mode is designed for a specific type of trader. The platform provides three main modes: isolated margin for clear risk separation, cross margin as a default all-in-one solution, and portfolio margin for experienced investors. Understanding the differences between these modes is critical for optimizing your trading strategy.

Isolated Margin: The Principle of Maximum Protection

Isolated margin operates on a simple principle: each trading pair functions completely independently. This means that funds allocated to one position cannot be used for another. This approach is especially attractive for traders who want to precisely control risk for each trading pair separately.

In isolated margin mode, you can work with spot trades, perpetual contracts in USDT and USDC, futures, and inverse contracts. However, an important restriction is that this mode does not support platform loans. Instead, users can activate the auto-margin replenishment feature, which automatically redirects profits from one position to support another before liquidation.

Liquidation in isolated margin mode occurs when the mark price reaches the set liquidation price for a specific position. This provides traders with a clear reference point and simplifies risk planning. Additionally, with isolated margin, you can set different leverage levels for different positions—such flexibility is not available in other modes.

Cross Margin: A Balance Between Flexibility and Control

Cross margin is set as the default in ETA and represents a compromise solution. In this mode, all funds in your account are combined into a common pool that can be used for all open positions. This means that profit from one pair can help sustain another position before liquidation.

Cross margin supports the full range of tools: spot trading, margin trading on spot, perpetual contracts (USDT and USDC), futures, options, and inverse contracts. Unlike isolated margin, cross margin allows loans within the platform’s available credit limit.

Margin calculation in cross margin mode is based on the total value of positions, applying initial and maintenance margin rates. Liquidation triggers when the maintenance margin ratio (MMR) reaches 100%. The displayed liquidation price is approximate, as the actual trigger depends on MMR movement rather than a specific price.

An important feature: in cross margin mode, unrealized profits from contracts can be used to open new positions, enabling more efficient capital utilization. However, automatic margin replenishment is not available in this mode.

Portfolio Margin: For Advanced Traders

Portfolio margin is a new generation risk management mode designed for professional derivatives traders. This mode requires a minimum net capital of $1,000, emphasizing its focus on experienced users.

The main advantage of portfolio margin is that margin requirements are calculated based on the entire portfolio. If your positions are well-hedged (for example, with simultaneous long and short positions), the system can significantly reduce the required margin. This is possible due to correlation considerations between assets and cross-margin support.

In portfolio margin mode, spot trading, margin trading on spot, and the full range of derivatives are supported. Like cross margin, loans and unrealized profits can be used. However, hedging is not permitted in this mode—trading is only conducted in a unidirectional manner.

Comparative Table of Margin Modes

Rules for Switching Between Margin Modes

Switching from one mode to another is not possible at any arbitrary moment—the system has clear requirements.

Switching to isolated margin requires: no active options positions and spot margin orders, sufficient assets to meet increased margin requirements, no loans, margin trading on spot disabled, and current position parameters must meet the new mode’s requirements. After a successful switch, spot margin trading and auto-replenishment are disabled by default.

Switching to cross margin requires ensuring that the initial margin ratio does not exceed 100% after switching. The system will adjust leverage accordingly, choosing the lowest among the set values for hedged positions. After switching, spot margin trading is enabled automatically.

Switching to portfolio margin is similar to cross margin requirements, with an additional condition: in hedging mode, there should be no active positions or orders. This mode operates only in a unidirectional manner.

How to Choose the Right Mode

The choice among these three options depends on your trading style and experience level. Beginners who want to minimize cross-systematic risk and clearly control maximum losses per pair should consider isolated margin. More active traders working with multiple pairs and seeking more flexible profit utilization will naturally find cross margin the optimal solution.

For professional traders with well-balanced, hedged portfolios, portfolio margin offers the most efficient capital management. Remember that the selected mode applies to your entire account—different modes cannot be used simultaneously for different trading pairs.