What is isolated margin, and how can it benefit OPUSDT futures traders?

What is isolated margin, and how can it benefit OPUSDT futures traders?

Blog Article

Isolated margin is a type of margin system in OPUSDT futures trading that confines the margin allocated to a specific position, meaning that losses are limited to that position’s margin. This system allows traders to manage risk more precisely, as they can set a specific amount of capital at risk without affecting other positions or their overall account balance. On platforms like OPUSDT, isolated margin is ideal for traders who want to limit their exposure on high-risk trades or manage multiple positions with different risk profiles. If the market moves against a position in isolated margin mode, only the funds allocated to that position will be affected, protecting the rest of the trader’s capital. This can be beneficial for managing volatile assets like OP, where sudden price swings can result in rapid losses if not properly managed.