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RISK · ISOLATED MARGIN

Isolated-Margin Exposure: A Worked Crypto Example With Fees Included

Isolated margin caps what one position can lose at its margin. The trade-off is that liquidation comes sooner.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

With isolated margin, each position has its own margin; a liquidation cannot take more than that position's margin. Example: $1,000 margin on a 10× $10,000 BTC long: the maximum loss is roughly the $1,000 margin (plus fees), and liquidation sits about 9.5% below entry after maintenance margin in a simplified calculation. Size from your stop first; then set isolated margin so liquidation is well beyond that stop.

Worked example

StepValue
Margin$1,000
Leverage10×
Notional$10,000
Max loss (approx.)≈ margin + fees
Liquidation distance (approx.)≈ 9.5% below entry
Fees (0.05% × 2)≈ $10
Isolated vs crossIsolated vs cross. Left, Isolated: Loss capped at position margin; Liquidation closer; Clear per-trade limit. Right, Cross: Uses whole balance; Liquidation further; One position can drain account.ISOLATEDLoss capped at position marginLiquidation closerClear per-trade limitCROSSUses whole balanceLiquidation furtherOne position can drain account
Isolated suits defined per-trade limits. Original ChartsPod editorial graphic.

Setting isolated margin

Approx. liquidation distance by leverage (%)Approx. liquidation distance by leverage (%): 5× 19.5 %; 10× 9.5 %; 20× 4.5 %.APPROX. LIQUIDATION DISTANCE BY LEVERAGE (%)5×19.5 %10×9.5 %20×4.5 %
Simplified: 1/leverage − 0.5% maintenance. Original ChartsPod editorial graphic.

Read the exact liquidation price from the exchange after placing the position.

Conclusion

Related: Cross-Margin Exposure: A Worked Crypto Example With Fees Included, Liquidation Buffer: A Worked Crypto Example With Fees Included.

Plan the same calculation with ChartsPod's position planner.

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With isolated margin, each position has its own margin; a liquidation cannot take more than that position's margin.

See Isolated-Margin Exposure on live data in the free ChartsPod terminal.

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Questions readers ask

What is isolated margin?

Margin assigned to one position only.

What's the max loss?

About that position's margin plus fees.

Why is liquidation closer?

Less margin backs the position.

Sources and methodology

Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).

  1. Bybit: Liquidation process — mark price and margin modes.
  2. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.