> ## Documentation Index
> Fetch the complete documentation index at: https://docs.entry.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Cross and isolated margin

Cross margin and isolated margin are two different ways to manage risk for a leveraged position. In Entry Finance, this choice is made from the leverage and margin controls in [Open positions and orders](/using-the-terminal/open-positions-and-orders). They decide how much of your account balance can support an open trade.

# Isolated margin

With **isolated margin**, you assign a specific amount of margin to one position. Only that amount is at risk for that trade. If the position goes badly, the loss is limited to the margin allocated to that position, not your whole derivatives balance.

## Simple isolated example

You open a position with `100 USDC` in isolated margin.

If the trade fails badly, that position can lose the `100 USDC` assigned to it, but it does not automatically pull in the rest of your available balance.

# Cross margin

With **cross margin**, your available account balance can help support the position. This gives the trade more room and can reduce the chance of immediate [liquidation](/trading-basics/liquidation-price-and-risk-engine), but it also means more of your balance is exposed.

## Simple cross example

You open a position and your account has `500 USDC` available.

In cross mode, the system may use more of that balance to keep the trade alive if the market moves against you. That can be useful, but it also means one bad position can affect more of your account.

# Why this matters

The choice depends on what you want:

* **Isolated margin** gives more control over risk on a single trade
* **Cross margin** gives more flexibility and more room for the position

Many beginners prefer isolated margin because it is easier to understand and easier to limit risk.

# When traders use each one

Traders often use **isolated** margin when they:

* want strict risk control
* are testing an idea with a small position
* do not want one trade to affect the rest of the account

Traders often use **cross** margin when they:

* actively manage positions
* want to use the whole account more efficiently
* understand the extra account-level risk

If you are still learning how [Margin explained](/trading-basics/margin-explained) works, isolated mode is often the easier place to start.

If you want to see how the liquidation boundary behaves differently in **Cross** and **Isolated** mode, read [Liquidation price and risk engine](/trading-basics/liquidation-price-and-risk-engine).