Crypto trading · Pro
Isolated margin
Also searched as: IM
What does Isolated margin mean?
Isolated margin allocates collateral to a particular position or position group rather than automatically supporting it with all eligible account collateral. Exact replenishment and liquidation rules depend on the platform.
Example
One position has a separate margin allocation while another position has its own allocation.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Automatic margin replenishment may draw additional funds when enabled. Isolation does not prevent a prop firm from applying an account-wide loss limit.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.