What Does Isolated Margin Mode Refer to in Futures Trading, and How Can I Turn It On?

In isolated margin mode, traders' margins are used separately from one another to build independent positions, enabling traders to isolate their position risks.

When a position incurs losses that trigger forced liquidation, the maximum loss of margin will be limited to the margin originally deposited for that one particular position, without risking liquidation of the rest of the funds in the futures wallet.

Isolated margin mode also enables traders to add to/reduce margins after opening positions, enabling them to better adjust the respective margin maintenance ratios of their positions.

To turn on Isolated Margin Mode, go to the Futures Market trading page on ZMO. Click the "Cross" button on the order panel, select "Isolated Margin Mode," and click confirm. You’ve switched to Isolated Margin Mode successfully, and each new futures position you open will have its own dedicated margin. Please note that you will likely have to add more margin to each position to reduce the risk of liquidation.

Q: What Collateral Can Be Used in Isolated Margin Mode?

To better manage position risks, we currently only allow USDT to be used as collateral in Isolated Margin Mode.

Q: How can Margins be Adjusted in Isolated Margin Position?

Under the Positions tab, traders can find the position margin on their currently held positions. Clicking the edit button will bring up a popup window to adjust the position margin. Traders can choose to either add margin from the futures wallet to the Isolated margin position, or withdraw margin from the Isolated margin position to the futures wallet.

Q: How is the Initial Margin Calculated in Isolated Margin Mode?

The formula for calculating initial margin is as follows:

Initial Margin = Order Size × Order Price × (Initial Margin Percentage + 2 × Taker Fee Percentage) × (1 + Adj_conf)

NOTE: Adj_conf = 1% currently