Cross margin vs isolated, in one example
$10,000 account, three 10x longs:
▫️
$BTC $50k,
$ETH $30k,
$SOL $20k
▫️ SOL drops 20%, BTC and ETH don't move
Isolated:
▫️ only SOL gets liquidated, about -$2,000
▫️ BTC and ETH still have 9% of room
Cross:
▫️ nothing liquidated yet, but -$4,000 on the account
▫️ BTC and ETH room shrinks from 9% to 6.25%
Cross is great for hedges. For separate bets, isolate them
Which one do you use?