Many people trade contracts but cannot distinguish between full margin and isolated margin. They open positions with leverage in a muddled way and don't understand how they got liquidated. Today, I will clarify these two modes:

Isolated Margin: The amount you invest determines the maximum loss. For example, if the account has 5000U and only 500U is used to open a position, even if the market reverses, the maximum loss will only be 500U, which does not affect other funds. This is suitable for those who want to control risks and proceed steadily, as each position is independent and does not impact the whole account.
Full Position: Once Get Liquidated, the remaining funds in the account will suffer losses together. The system will use the account's spare money to "extend the life" of the current position until it cannot hold on and all is lost. It seems to have a high tolerance for errors, but in reality, the risk is extremely high, especially for those who like to hold positions without setting stop-loss orders; it is a ticking time bomb.
How to choose? For beginners or those just trying out contracts, it is advisable to use isolated margin first to directly protect the principal; if you have a mature trading system and can strictly control risks, you may consider using cross margin to improve efficiency, but you must set stop-loss.
The essence of contracts is to endure for a long time and move steadily; do not treat your account like a casino. There is no high or low between full position and isolated margin; it all depends on whether you can manage it. Whether this round of market can turn around relies entirely on yourself. Make your layout early to get out of the trough sooner. #白宫加密报告发布 #Gate Alpha积分撸40U #6 BTC全民空投限时派送中 #GT