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The distinction between isolated and cross margin is key for managing trading risk. Koroush AK explains that with isolated margin, only the margin allocated to a specific trade is at risk, while cross margin puts the entire account at risk.
According to Koroush AK, most traders are safer using isolated margin because it prevents losses from one trade from impacting other positions or draining the account.
These considerations around margin management arrive amid broader market volatility, where asset sentiment and risk tolerance can rapidly shift. Such dynamics were analyzed in detail in Koroush AK's assessment of the recent Bitcoin sentiment shift and its implications for ongoing downtrends, offering further context to the prudent risk strategies discussed here.