What is the isolated margin mode and how does it differ from cross-margin?

Isolated margin is a market risk management tool that allows you to limit the amount of funds used to maintain a particular position without affecting the trader's overall balance. This helps minimize potential losses in the event of adverse price movements. In the isolated mode, a trader risks only the margin that has been allocated for a particular position.
For example, a trader opens a position of 15,000 USDT in the BTC/USDT pair at a price of 100,000 USDT using 1x leverage. The position requires an initial margin of 0.15 BTC to open. He then increases the leverage to 3x and now the required margin drops to 0.05 BTC. In case of liquidation, the trader will lose only 0.05 BTC (excluding commissions) as the rest of the balance is not affected. This approach allows limiting risks.
You can read more about the liquidation process in our article at the link.

At the moment, only cross-margin mode is available on WhiteBIT.

Cross-margin is a system where the entire balance of a trader's wallet, including unrealized profits and losses on open positions, is used as margin.

In this mode the margin of all positions is combined: profitable trades can cover the margin requirements of unprofitable trades. This method of allocating funds allows losing positions to stay open longer, which increases their chance of reaching a possible profit. However, it is important to keep in mind that significant losses in one position can result in the loss of the entire available account balance.

Setting up an isolated trading mode using sub-accounts

Currently, only cross-margin trading mode is available on WhiteBIT. However, the possibility of using the isolated mode can be realized using the sub-accounts feature. This approach offers a number of advantages:

• Effective risk management: sub-accounts allow you to limit the amount of funds involved in trading, while the isolated mode reduces the probability of significant losses.
• Strategy separation: using multiple sub-accounts allows you to test different trading approaches without jeopardizing your main account.
• Transparent accounting: trading through sub-accounts makes it easier to monitor financial results and manage assets.
  
  

You can learn more about the functionality of sub-accounts in our article here. 

Setup procedure

Creating a sub-account

In order to separate trading and asset allocation between accounts, you must create a sub-account. To do this:

1. Log in to your WhiteBIT account;
2. Go to the "Subaccounts" section (available in your account settings);
3. Click "Create Subaccount", set its parameters (name, password and additional settings).

Funding a sub-account

The sub-account must be funded in order to trade. The procedure of funds transfer includes the following steps:

1. Open the "Subaccounts" section;
2. Select the sub-account to which you want to transfer assets;
3. Click the "Transfer" button, specify the transfer amount and confirm the operation.
   
   

Using the isolated mode through sub-accounts allows traders to apply a more structured approach to money management, providing additional protection from risks. Setting up this system helps to improve trading efficiency and optimize asset management.

Support

In case of any questions related to the functionality of our exchange, you can:

• Leave a request on our website;
• Write to the support email: support@whitebit.com;
• Write to the chat using the button in the lower right corner of the screen (in the upper right corner of the WhiteBIT app, click ).