Isolated functions are mechanisms used in trading platforms, particularly in margin trading. They help to manage and limit risk by tying a specific portion of a trader’s funds to a single position.When a trader uses an isolated function, only the amount allocated to that position is at stake. This means that any losses incurred will not affect the overall balance in the trader’s account. For example, if a trader has $1,000 but uses $100 in an isolated position, any losses will only reduce that $100, leaving the remaining $900 intact.This approach contrasts with cross margin trading, where all available funds can be used to cover losses across multiple positions. Isolated functions provide traders with greater control over their investments and a way to manage risk more effectively.By using isolated functions, traders can engage in higher-leverage trades without jeopardizing their entire capital. This allows for more strategic decision-making while providing a safety net against extreme market fluctuations.