1. Cross margin

Cross margin trading is a type of crypto trading in which the margin required for a position is covered by the total available funds in your trading account, rather than being restricted to the margin allocated specifically for that position. It allows traders to use their entire account balance to support their trading positions, potentially increasing their trading capacity and potential profits. However, it also exposes them to higher risks, as losses on one position can affect the entire account.

Example of cross margin

Let say you have an account balance of $10,000 and you are on a crypto trading exchange that uses a leverage of 1:100 for bitcoin. If you want to place a position value at $1000,you will divide that $1000 by 100 in order to use a margin of $10 to open that position. In your trading account,you will still have $9910 left. This amount will still be used to protect your running position such that even if the loss exceeds $10,your position will still continue to run.

Let say that the current market price for btc is $30,000 and the price increases by 10%,then your trading account will also increase in value equivalent to your running position. If the price decreases by 10%, your trading account will also decrease in value eqivalent to your running position

2. Isolated  margin

Isolated margin trading is a type of crypto trading in which the margin required for a position is not covered by the total available funds in your trading account. Instead, you only allocate specific amount of your funds in your trading account to a certain position. If the loss exceeds the allocated funds,then the position will automatically close itself.This will ensure that your entire fund is well protected from liquidation. 

Example of isolated margin

Let say that you have an account balance of $5000 and you are on a crypto exchange that allows you to apply upto 1:100 leverage for ethereum. If you want to place a position value at $500 then you will divide that $500 by 100 in order to apply $5 to open that position value. When you subtract $5 from $5000, you will be left with $4995 margin such that when the price of ethereum is $1800 and it decreases by 10% then your applied margin  will also decrease by equivalent amount until it becomes 0 which will cause the running position to also automatically close while when the price increases by 10%, then the applied margin will also increase by equivalent such that your trading account value will also increase in value.