Cross margin shares eligible collateral across positions within a defined account or margin pool. A position can draw support from that shared pool rather than relying only on a separately assigned amount.
Shared support and shared exposure
Where the rules allow, gains on one position can help offset losses on another. This may avoid an isolated liquidation that would occur with a smaller dedicated allocation. However, a losing position can also consume resources supporting other positions and expose more of the shared balance.
The word “cross” does not mean every asset in every wallet is automatically included. Eligible collateral, subaccount boundaries, unrealized-profit treatment and collateral discounts depend on the venue.
Monitoring the account
Risk may be assessed using account equity and aggregate maintenance requirements. As a result, a position’s displayed liquidation price can move when another position changes, funds are withdrawn or collateral loses value. Some systems treat that price as an estimate rather than the actual trigger.
Cross margin is also different from hedge mode, which controls whether opposite positions can coexist. Sharing collateral does not itself neutralize market exposure or guarantee that profitable positions remain untouched during account-level liquidation.