# Isolated margins and cross-margining *Margin* acts as a guarantee or security for the trader's position. If the position moves against the trader, the margin acts as a buffer to prevent the trader from losing more money than the margin can cover. If the trader's position moves in their favor, the margin will be released back to the trader's account, allowing them to use it for other trades. *Isolated margining* is a risk management technique that allows traders to allocate a specific amount of funds to a particular position. This method ensures that the margin required for one position is not used to support any other open positions. *Cross-margining* is a method of margining in which the trader's total margin requirement is calculated based on their total portfolio's risk rather than just the position they hold in a single contract. While cross-margining can potentially reduce margin requirements, it also increases the risk of margin calls, which occur when the margin falls below a certain threshold, forcing the trader to either deposit additional collateral or close their position. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://prodigyfi.gitbook.io/trading-parameters/trading-basics/isolated-margins-and-cross-margining.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.