Margin trading offers traders the opportunity to amplify their market exposure by borrowing funds, and KuCoin’s Isolated Margin mode is a powerful tool designed to help users manage risk more effectively. Unlike cross-margin trading, where your entire account balance acts as collateral, isolated margin limits your risk to a specific trading pair and allocated margin. This guide walks you through using Isolated Margin on the KuCoin mobile app, step by step, so you can start trading with confidence.
Whether you're looking to buy long or sell short, understanding how to properly set up and manage your isolated margin positions is crucial for maximizing gains while minimizing potential losses.
Access the Isolated Margin Page
To begin, open the KuCoin app and navigate to the trading section:
- Tap on Trade from the bottom menu.
- Select Margin Trading.
- Choose Isolated Margin.
Once inside, tap the trading pair icon on the left side of the screen to browse available pairs. You’ll want to select an isolated margin-enabled pair such as BTC/USDT, ETH/USDT, or others that support this feature.
Each isolated position operates independently — meaning your BTC/USDT trade won’t affect your ETH/USDT liabilities or margin usage. This separation enhances control and reduces systemic risk across your portfolio.
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Transfer Your Principal Amount (Margin)
Before borrowing or trading, you must first transfer assets into your Isolated Margin account.
- On the trading interface, tap the Transfer icon.
- In the pop-up window, select your desired trading pair (e.g., BTC/USDT).
- Choose the asset you'd like to transfer (such as USDT or BTC).
- Enter the amount and confirm the transfer.
This transferred amount serves as your initial margin, which determines your borrowing capacity and liquidation threshold. The stronger your margin base, the more resilient your position will be against market volatility.
Pro Tip: Always leave a buffer in your isolated account to avoid sudden liquidations during sharp price swings.
Borrow Funds to Increase Exposure
With your margin deposited, you can now borrow funds to increase your trading power.
- Tap the Borrow button on the trading screen.
- Select the Currency Type you wish to borrow (e.g., BTC or USDT).
- Enter the amount.
- Confirm the loan.
You’ll be charged interest based on the borrowed amount and duration. Interest rates are dynamic and updated in real time within the app.
Auto-Borrow and Auto-Repay Features
KuCoin offers two convenient automation options:
- Auto-Borrow: Automatically borrows funds when placing a trade if your available balance is insufficient.
- Auto-Repay: Repays outstanding loans when you have excess funds in your margin account, helping reduce interest costs.
These features streamline trading efficiency, especially for active users who frequently enter and exit leveraged positions.
👉 Learn how smart borrowing strategies can boost returns in volatile markets.
Place Your Trade: Going Long or Short
Now that you’ve borrowed funds, it’s time to execute your trade. Below are examples for both bullish and bearish strategies.
Example: Buy/Long BTC
If you expect Bitcoin’s price to rise:
- Tap Buy.
Choose an order type:
Limit Order: Set a specific price at which you want to buy BTC.
- Enter Limit Price, Amount, and Vol (total value in USDT).
Market Order: Buy immediately at current market price.
- Enter the Amount of USDT to spend.
Stop-Limit Order: Trigger a limit order once the market hits a specified stop price.
- Set Stop Price, Limit Price, Amount, and Vol.
Stop-Market Order: Automatically buy at market price once the stop price is reached.
- Specify only Stop Price and Amount of USDT.
After setting parameters, tap Buy/Long BTC and enter your Trading Password to confirm.
Example: Sell/Short BTC
If you anticipate a price drop:
- Tap Sell.
- Choose your preferred order type using the same logic as above.
- For shorting, you’re borrowing BTC to sell now, with plans to buy back later at a lower price.
- Input all required fields depending on order type.
- Tap Sell/Short BTC and authenticate with your trading password.
Shorting introduces unique risks — always use stop-losses and monitor your position closely.
Close Your Positions
When it’s time to exit your trade:
- Tap the Close All button on the trading interface.
- This action sells your long position or buys back your shorted assets, closing the trade completely.
Alternatively, you can manually place an opposite trade to partially or fully close your position.
Closing frees up your collateral and stops further interest accrual on borrowed funds.
Repay Your Loans
After closing your position, repay any borrowed assets plus accrued interest:
- Tap Repay on the trading screen.
- Select the currency you owe (e.g., borrowed USDT or BTC).
- Enter the repayment amount.
- Confirm with your Trading Password.
You can choose to repay partially or in full. Early repayment reduces total interest paid.
Note: Unrepaid loans continue accruing interest even after closing a trade — always settle debts promptly.
Check Liabilities and Order History
Staying informed is key to successful margin trading.
To review your financial status:
- Navigate back to the Margin Trading interface.
- View active liabilities, including borrowed amounts, interest rates, and repayment deadlines.
- Access detailed Order History to track past trades, borrowings, repayments, and transfers.
This transparency allows for better decision-making and helps maintain healthy risk management practices over time.
Frequently Asked Questions (FAQ)
What is Isolated Margin?
Isolated Margin limits your risk to a specific trading pair and allocated capital. Only the margin assigned to that position can be used as collateral, protecting the rest of your account balance from liquidation.
How does Isolated Margin differ from Cross Margin?
In Cross Margin, your entire account equity backs your positions, increasing leverage but also systemic risk. Isolated Margin confines risk to one pair, offering greater control and predictability.
Can I switch between Isolated and Cross Margin?
Yes, you can toggle between modes directly in the app under the Margin Trading section. However, each has different risk profiles — choose based on your strategy and risk tolerance.
What happens if my position gets liquidated?
If the market moves against you and your margin ratio drops below the maintenance level, your position will be automatically liquidated. Any remaining funds after debt repayment will be returned to your spot wallet.
Does KuCoin charge fees for borrowing?
KuCoin charges interest on borrowed assets, not upfront fees. Rates vary by asset and demand, and are displayed in real time before you confirm a loan.
Can I use Auto-Borrow for multiple trades?
Yes, Auto-Borrow applies per trading pair in Isolated Margin mode. It activates whenever you lack sufficient balance to open a new leveraged position in that pair.
Final Tips for Success
- Start small: Test isolated margin with low capital until you're comfortable.
- Monitor interest rates: High borrowing costs can erode profits quickly.
- Use stop-loss orders: Protect yourself from sudden market reversals.
- Never over-leverage: Even with isolation, excessive leverage increases liquidation risk.
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By mastering KuCoin’s Isolated Margin feature through disciplined planning and execution, you can unlock new opportunities in cryptocurrency trading — all while keeping risks under control.