Imagine you're betting on the price of something going up or down (like stocks or crypto). Isolated margin is like putting a specific amount of money aside for each bet. This way, if your guess is wrong, you only lose the money you set aside for that particular bet, not all your money.
Here's why it's useful for risky bets (called speculative positions):
However, there's a catch:
So, isolated margin is good for trying out risky ideas without putting your whole portfolio at risk, but it also limits your potential gains.
