JuCoin offers two margin modes: Isolated Margin Mode and Cross Margin Mode.
Isolated Margin Mode
Isolated Margin Mode means that the trader's account balance and the position margin are separated. In this margin mode, traders can freely decide the leverage multiple they want to use. If the position is forcibly liquidated, the maximum loss the trader will bear is the position margin.
Example: An investor opens a position of 150 BTCUSD contracts at a price of $100,000 using 1x leverage on JuCoin. The initial margin for opening the position is 0.15 BTC. Later, the investor increases the leverage to 3x, and the required initial margin (collateral) is adjusted from 0.15 BTC to only 0.05 BTC. In the event of liquidation, the investor will only lose the initial margin of 0.05 BTC (excluding fees). This allows traders to effectively control risks.
Cross Margin Mode
Cross Margin Mode is the default margin mode on JuCoin. Cross Margin Mode refers to using all available balances of the corresponding currency as position margin to maintain the position and avoid liquidation. In this margin mode, when the net asset value is insufficient to meet the maintenance margin requirement, forced liquidation will be triggered. If the position is forcibly liquidated, the trader will lose all assets in the corresponding currency.
Example: An investor opens a BTCUSDT position on JuCoin. When the BTCUSDT position is liquidated, the investor will lose all USDT balances. This mode is more suitable for users who can tolerate high risks.
The Cross/Isolated Margin Mode can be switched. Visit the futures trading interface and click on Cross/Isolated to switch modes.
Traders on JuCoin can switch between cross margin and isolated margin mode even while holding a position. They can adjust the margin mode anytime in the order placement area. Once changed, the selected mode will apply to open positions, active orders, and conditional orders. Adjusting the margin amount will affect and modify the liquidation price of the position. As long as there is sufficient margin in the account and the adjustment does not immediately trigger liquidation, users can switch between isolated and cross margin mode at any time.
