Most leveraged venues offer two margin modes. LucraX supports both but the implications differ.
Cross margin
All positions share the account's free margin. A losing trade can draw from collateral allocated to other positions. Liquidation happens when total account equity hits maintenance margin.
- Pros: most efficient use of capital; positions help each other survive normal noise.
- Cons: a single bad position can tank the whole account.
Isolated margin
Each position has its own margin allocation. Liquidation is per- position; other positions are unaffected.
- Pros: contagion-free; cleaner per-trade accounting.
- Cons: less capital-efficient; per-position margin must be refilled or the position closes.
Per-venue defaults
| Venue | Default |
|---|---|
| Binance Futures | Cross |
| ByBit | Cross |
| BitMEX | Cross |
| Hyperliquid | Cross (isolated on request) |
| LNMarkets | Isolated (only mode) |
LNMarkets isolated close pitfall
On isolated margin, never close with an opposite-side market
order - that opens a new position. LucraX uses the venue's
close_trade(trade_id) API for LNMarkets. The exit reason ends up
as manual or whatever was attached.
Setting the mode
Set the mode at the exchange, not in LucraX. Most venues require all open positions to be flat before switching.