Isolated Margin for Perpetuals Launches on Crypto.com Exchange

Crypto.com Exchange has launched Isolated Margin for Perpetual Contracts trading, offering traders a clearer way to control risk – separating each position instead of using a single margin for the entire account.

1/14/20262 min read

What is Isolated Margin?

Isolated Margin allows you to specify a separate margin amount for each position . The entire PnL, fees, funding, and risk of that position are completely isolated from other orders.

When you select Isolated Margin, the system will create a separate "virtual account" for that position .

  • Margin is transferred to the isolated block.

  • PnL and funding only affect this block.

  • Liquidation only occurs in an isolated position.

  • Margin isolated orders cannot be withdrawn until the order is closed.

  • Supports USD (fiat) and USDC

The main account can still continue to trade Cross Margin as usual.

Step 1: Select Isolated Margin

In the order form, select Isolated in the Margin Mode section.
You can hold both simultaneously :

  • 1 Cross position

  • 1 isolated position
    on the same trading pair.

Step 2: Place an order

The system will:

  • Calculate the required margin.

  • Check available balance

  • Automatically transfer margin to an isolated position.

Step 3: Activation Position

After the order is matched:

  • PnL, funding, and liquidation are handled independently.

  • No impact on other positions

Margin and leverage management

Adjust the lever.

  • Increase leverage: do not change the current margin.

  • Reduce leverage: you need more margin if it's not enough.

Add more margin

  • Adding margin can reduce liquidation risk.

  • The money was transferred from the main account to the isolated account.

Withdraw margin

  • Only available when the position is profitable.

  • The system automatically calculates the maximum safe withdrawal amount.

Close position & pay out

  • Close the entire account: Remaining margin + PnL will be returned to the main account.

  • Partially closed:

    • Reduce size

    • The margin remains isolated (unless you manually withdraw it).

This helps traders keep the buffer safe for the remainder of the order.

Liquidation & Risk Limitation

If the position does not meet the maintenance margin:

  • Only isolated positions were liquidated.

  • Do not use funds from the main account.

  • Other positions remain completely unaffected.

Any remaining balance after liquidation will be handled according to the exchange's insurance fund mechanism.

When should isolated margin be used?

Isolated margin is most suitable when:

  • High leverage/short-term trading

  • Testing new strategies or products.

  • Run multiple strategies in parallel.

  • Event- driven trading , news-based trading, and high-risk setups.

Conclude

Crypto.com Exchange's launch of Isolated Margin for Perpetuals helps traders:

  • Tighter risk control

  • Separate each trading idea.

  • Gain more confidence when using high leverage.

This is a significant upgrade, especially for traders who actively manage their capital and strategies.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

Follow HCCVenture here: https://link3.to/holdcoincventure

What is Isolated Margin?

Isolated Margin allows you to specify a separate margin amount for each position . The entire PnL, fees, funding, and risk of that position are completely isolated from other orders.

When you select Isolated Margin, the system will create a separate "virtual account" for that position .

  • Margin is transferred to the isolated block.

  • PnL and funding only affect this block.

  • Liquidation only occurs in an isolated position.

  • Margin isolated orders cannot be withdrawn until the order is closed.

  • Supports USD (fiat) and USDC

The main account can still continue to trade Cross Margin as usual.

Step 1: Select Isolated Margin

In the order form, select Isolated in the Margin Mode section.
You can hold both simultaneously :

  • 1 Cross position

  • 1 isolated position
    on the same trading pair.

Step 2: Place an order

The system will:

  • Calculate the required margin.

  • Check available balance

  • Automatically transfer margin to an isolated position.

Step 3: Activation Position

After the order is matched:

  • PnL, funding, and liquidation are handled independently.

  • No impact on other positions