---
title: "Leverage, margin and funding"
description: "Cross vs isolated margin, setting leverage, and how funding works on a perp."
---

> Documentation Index
> Fetch the complete documentation index at: https://docs.floatout.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Leverage, margin and funding

## Margin mode

Each market is either **cross** or **isolated**:

- **Cross** shares margin across every cross position, so a loss on one can be covered by
  balance backing another.
- **Isolated** walls off a fixed amount of margin to that one position. A loss there cannot
  touch the rest of your account, but the position also can't draw on it to avoid liquidation.

Change it from the margin mode control above the order ticket, for a market with no open
position.

## Leverage

Set per market from the leverage control. It comes from your live Hyperliquid account state, not
a stored default, so it can take a moment to appear after you connect.

Higher leverage means less margin per position and a liquidation price closer to your entry.
Watch the liquidation price on Positions, it is the number that ends the trade if price reaches
it. Liquidation is enforced by the protocol, not by this site, and cannot be paused or reversed.

## Funding

Funding is what keeps a perpetual's price close to spot. It's exchanged hourly between the two
sides of the trade while a position is open, longs pay shorts or shorts pay longs depending on
which side of spot the perp is trading. You do not pay or receive it unless you hold an open perp
position at the funding timestamp.

Source: https://docs.floatout.trade/trading/leverage-margin-funding/index.mdx