Cross vs Isolated Margin: Which Should You Use?
Margin mode determines how collateral is shared (or isolated) across positions. The choice affects liquidation behavior, capital efficiency, and how risk bleeds between trades.
Can I change margin mode on an open position?
On Tenbagger, you typically set the margin mode when opening a position. To change the mode of an existing position, you'd close and reopen it or adjust through the position's margin controls.
Which mode is safer?
Isolated is safer against a single bad trade — losses are capped at the allocated margin. In a properly hedged portfolio, cross can be safer because positions buffer one another.
Does isolated margin prevent all losses?
No. Isolated margin prevents losses on one position from spilling into others. If the trade goes against you, the entire margin allocated to that isolated position can still be lost.
How do margin mode and leverage interact?
They are independent settings. Margin mode determines which collateral pool a position draws from; leverage determines position size relative to margin. Any combination — 5x cross, 20x isolated, etc. — is possible.
What if the collateral currency differs from the perp's quote currency?
On Tenbagger, perps are quoted in USDC and USDC is the collateral. Under a unified account, holding spot USDC counts automatically as collateral.