> For the complete documentation index, see [llms.txt](https://docs.navigator.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.navigator.exchange/trade/cross-margin.md).

# Cross Margin

#### Cross-Margin Trading with Orderly Pool on Navigator

With Navigator Exchange’s integration of Orderly Pool, traders now have the flexibility to choose both isolated-margin on CP and SP and cross-margin trading styles on OP within a single platform.\
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Orderly Pool enables Cross-Margin Trading, allowing traders to optimize capital usage and risk management.

**✅ How Cross-Margin Works?**

* Shared Margin Across Positions: Instead of isolating margin for each position, the entire account balance is used as collateral.
* Reduced Liquidation Risk: Losses from one position can be offset by profits from another, helping to prevent liquidation.
* Higher Capital Efficiency: Maximize leverage without manually reallocating margin for different trades.
* Better Risk Management: Traders can manage multiple positions with a unified balance, reducing the chances of forced liquidation.

**🔹 Example Scenario:**

* A trader opens a long position on ETH/USDC with $5,000 margin on Orderly Pool.
* Simultaneously, the trader opens a short position on BTC/USDC using the same cross-margin balance.

If BTC drops and ETH rises, the profit from ETH can cover BTC losses, reducing the risk of liquidation.\
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**Comparing Isolated Margin & Cross-Margin Trading. Which One Should You Choose?**

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc5kH5ljIJi1O9PgT22fIlaEi28EwDjZyZWCxO1KLTTJF2g5PU6vPP59Nc9uYL45h9LdLRX8EFU5GQxmZfYT_Z8nRdvJRgYmRRmIRSRoGSyDV2QiD8KCkYbi_XidqE3ve5UD_eP?key=DGKEwwptfA7FevkC_Sg3_zz-" alt=""><figcaption></figcaption></figure>

**Prefer to have each position managed separately**? → Isolated Margin gives better control over individual trades.

**Want to optimize capital across multiple trades**? → Cross-Margin provides more flexibility for fund utilization.