1. What Is Isolated Margin Trading? 

Isolated Margin is one of the margin modes available in futures trading. Under Isolated Margin mode, margin is allocated separately to each position. Each position maintains its own margin balance, profit and loss (PnL), and liquidation risk independently.

If a position incurs losses, only the margin allocated to that position is at risk. The system will not automatically use other unallocated funds in your account to top up the position's margin.

Compared with Cross Margin, Isolated Margin is better suited for traders who want to manage risk separately across different positions. You can allocate margin independently to different contracts, long or short positions, or trading strategies, helping prevent severe losses in one position from affecting your other positions or overall account balance.

However, Isolated Margin does not eliminate liquidation risk. Since each position has a limited margin allocation, rapid adverse price movements may still cause the position to be liquidated if its margin no longer meets the required maintenance margin.

2. Isolated Margin vs. Cross Margin

3. How to Enable Isolated Margin

The following steps are provided as general guidance. Actual button names and page layouts may vary depending on the BTCC App or Web platform.

1. Go to the Futures trading page and select the contract you want to trade.

2. In the order entry or position settings panel, tap or click the Margin Mode option.

3. Select Isolated Margin and confirm the switch.

4. Set your leverage, order type, and order size.

5. Before placing your order, review the margin requirement, estimated liquidation price, trading fees, and take-profit/stop-loss settings. Then place a Buy/Long or Sell/Short order.

6. Once your position is opened, you can view key information such as Isolated Margin, Unrealized PnL, Estimated Liquidation Price, and Margin Ratio in the Positions panel.

If you have existing positions or open orders, switching the margin mode may be unavailable. Please cancel your open orders, close your positions, or try again once the required conditions are met.

4. Position Opening and Position Management Rules

5. How to Add Margin to an Isolated Position

Adding margin allows you to transfer available funds from your futures account to a specific isolated position, increasing its ability to absorb losses. Adding margin does not change the position direction, entry price, or position size.

To add margin:

1. Go to the Positions panel on the Futures trading page.

2. Select the isolated position you want to adjust, then click Adjust Margin or Add Margin.

3. Select Add Margin and enter the amount.

4. Review the updated Isolated Margin, Estimated Liquidation Price, and risk status.

5. Confirm the adjustment. The corresponding amount will be deducted from your available futures account balance and added to the selected isolated position.

Adding margin generally moves the estimated liquidation price farther away from the current market price, reducing the likelihood of liquidation. However, during periods of extreme market volatility, low liquidity, or rapid price movements, adding margin does not guarantee that the position will avoid liquidation.

6. How to Reduce Margin for an Isolated Position

Reducing margin transfers excess margin from an isolated position back to your available futures account balance. It does not change the position direction, entry price, or position size, but it reduces the position's risk buffer.

To reduce margin:

1. Go to the Positions panel and select the isolated position you want to adjust.

2. Click Adjust Margin or Reduce Margin.

3. Enter the amount you want to reduce. The page will display the maximum removable amount and the updated risk information.

4. Review the updated Isolated Margin, Estimated Liquidation Price, and Margin Ratio.

5. Confirm the adjustment. The removable margin will be returned to your available futures account balance.

If the remaining margin does not meet the platform's risk control requirements, or if reducing the margin would bring the position too close to liquidation, the request will be rejected. Reducing margin moves the estimated liquidation price closer to the current market price, so please proceed with caution.

7. Liquidation Rules for Isolated Margin

When the equity of an isolated position is no longer sufficient to meet the platform's risk control requirements, the system will initiate its risk management process. Depending on the circumstances, this may include restricting new orders, canceling existing orders, reducing positions, or liquidating positions. The specific handling process is subject to BTCC's risk control rules in effect at the time.

When trading in Isolated Margin mode, pay close attention to the following:

• Isolated Margin: The actual margin available to absorb losses for the position.

• Unrealized PnL: Floating profit or loss caused by market price movements, which directly affects the position's equity.

• Estimated Liquidation Price: A reference price calculated based on the current position, margin, market price, and risk parameters. It is for reference only.

• Risk Limit / Maintenance Requirements: Larger positions may require higher margin or be subject to stricter risk tiers.

• Liquidation Fee: If a position is liquidated, the applicable liquidation fee will be charged according to BTCC's rules. Please refer to the latest BTCC announcements and the product page for the applicable fee rates.

8. Fees Under Isolated Margin Mode

9. Risk Warnings for Isolated Margin

• While Isolated Margin helps contain the risk of individual positions, it does not eliminate the risks associated with futures trading.

• Higher leverage means even small price movements can quickly deplete your margin.

• Reducing margin increases the risk of liquidation by bringing the estimated liquidation price closer to the current market price.

• Adding margin can improve a position's risk profile, but it does not guarantee that the position will avoid liquidation.

• The estimated liquidation price is for reference only. The actual liquidation trigger may be affected by factors such as bid/ask prices, trading fees, funding fees, risk parameters, and market liquidity.

• Always choose an appropriate leverage level, position size, and take-profit/stop-loss strategy based on your own risk tolerance.

10. FAQ

Q1: Does Isolated Margin limit my maximum loss to the margin allocated to that position?

In most cases, yes. Under Isolated Margin mode, the risk of a position is generally limited to the margin allocated to that position and does not automatically extend to other unallocated funds in your account. However, under extreme market conditions, insufficient liquidity, or significant price gaps, the final handling is subject to BTCC's liquidation and Insurance Fund rules.

Q2: Will adding margin change my entry price?

No. Adding margin only increases the margin allocated to the position. It does not affect the position size, position direction, or average entry price.

Q3: Why does the estimated liquidation price move closer after I reduce margin?

Reducing margin decreases the position's risk buffer, leaving less room to absorb adverse price movements. As a result, the estimated liquidation price moves closer to the current market price.

Q4: Why can't I reduce margin?

Your request may be rejected if the remaining margin would no longer meet the platform's risk control requirements, the position carries excessive risk, there are pending abnormal orders, or the system is performing risk management. Please refer to the on-screen notification for the specific reason.

Q5: Can I switch an isolated position back to Cross Margin?

If the selected contract still has an open position or pending orders, switching the margin mode may not be available. Please cancel your open orders or close the position before switching, as instructed on the trading interface.

Q6: Why was my position liquidated even though the candlestick price didn't reach the liquidation price?

Liquidation monitoring may be based on the platform's bid and ask prices rather than the candlestick price. Since candlestick charts typically display the last traded price, which may differ from the best bid or ask, liquidation can occur before the chart price reaches the estimated liquidation price, especially during periods of wide spreads or high market volatility.