When trading with Cross Margin, it’s important to understand how to monitor your positions, assess your account risk, and interpret key indicators such as the Cross Margin Ratio. This article explains how to read these indicators and manage your positions effectively.
Margin Mode Labels
Each position on Flipster clearly displays its margin mode — either Cross Margin or Isolated Margin — so you can easily identify which system is being used.
- Cross Margin:
Your entire account balance (across multiple supported assets) is shared as collateral. Profits and losses from all positions affect your account-level margin. - Isolated Margin:
Each position has its own dedicated margin. Losses are limited to the margin allocated for that specific trade.
Tip: You can view the margin mode label directly in the Open Positions tab.
Understanding the Cross Margin Ratio
The Cross Margin Ratio is the key metric for monitoring the overall risk level of your account when using Cross Margin. It shows how close your account is to liquidation.
Cross Margin Ratio Formula:
Cross Margin Ratio = Account Maintenance Margin / Account Equity
Account Equity (Margin Balance): Includes collateral adjusted by its Collateral Value Ratio plus unrealized P&L from all positions.
Account Equity = Sum of (Collateral × Collateral Value Ratio) + Unrealized P&L
Color Indicators:
| Color | Risk Level | Description |
| 🟢 Green | Low Risk | Your account has sufficient collateral. You can continue trading or open new positions safely. |
| 🟡 Yellow | Moderate Risk | Your margin ratio is increasing. Consider adding more collateral. |
| 🔴 Red | High Risk | Your margin ratio is nearing 100%. Your account is at risk of liquidation. Add collateral or close positions immediately. |
Margin Ratio Range:
| Margin Ratio Range | Risk Level | Action |
| ≤ 20% | Low Risk | Plenty of margin left |
| 20% -50 % | Caution | Keep an eye on your exposure |
| ≥ 50% | Close to liquidation | Very close to liquidation |
| ≥ 100% | Liquidation | Liquidation |
Liquidation warning emails are sent when the margin ratio reaches 90% or higher.
Once the margin ratio reaches 100%, all positions in Cross Margin mode will be liquidated.
Key Terms
- Maintenance Margin: The minimum required margin to keep all positions active.
- Unrealized P&L: Profit or loss from all open positions that have not yet been realized.
Best Practices for Managing Cross-Margin Risk
- Check your Cross Margin Ratio frequently. Aim to keep it well below 50%.
- Diversify collateral with stable assets (e.g., USDT, USDe, USDC).
- Avoid overleveraging since it increases exposure across all positions.
- Close underperforming positions early to free up margin and reduce risk.
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.