比特财经阿杰
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What are full margin and isolated margin? This post provides a detailed analysis!
1. Full Margin Mode: All positions with the same margin assets share the full margin of that asset. In a forced liquidation event, traders may lose all of that margin and all full positions under that margin asset.
2. Isolated Margin Mode: A certain amount of margin is allocated to a position. If the position's margin loss falls below the maintenance margin level, the position will be forcibly liquidated. It is essential to add margin in advance.
To put it more simply, full margin mode allows for shared risk on the contract account assets, while isolated margin mode requires manual addition or reduction of the maintenance margin.
Introduction to the pros and cons of full margin and isolated margin:
1️⃣ In full margin mode, the contract account funds can serve as a reserve for unrealized losses, allowing for reasonable allocation of opening margin, and coupled with setting take-profit and stop-loss, it is relatively difficult to get liquidated.
2️⃣ In isolated margin mode, if you're not careful, you might get forcibly liquidated, or you may not have time to add margin before liquidation, because it can only withstand a small amount of unrealized loss.
For example, with Ethereum around the 3000 mark, in full margin mode, earning about 30 points with 100x leverage could yield a profit equal to 100% of the opening margin, whereas in isolated margin mode, earning about 15 points could yield 100% profit. Thus, isolated margin has higher profits but also higher risks; if you don't have time to add margin, you will face liquidation!
Regarding fund allocation!
Generally, for ultra-short-term positions, allocate 10% of funds, using 100x leverage, as Ethereum requires 300 points to get liquidated, so this allocation is relatively safe. Take-profit and stop-loss should be set, and it is advisable to monitor closely in short-term trading.
For medium to long-term positions, allocating 3%-6% of funds is more reasonable!
The take-profit and stop-loss space for medium to long-term can be larger, while for short-term, the take-profit and stop-loss space can be smaller!
Now let's talk about the pros and cons of high leverage with low margin versus low leverage with high margin trading methods:
For example: Total position of 10,000 USDT
Opening a position of 1,000 USDT with 100x leverage = opening a position of 4,000 USDT with 25x leverage
Their floating profits and losses are the same! However, the former has ample reserve account funds, and without calculating floating profit and loss amounts, we can understand that the former still has 9,000 USDT available for adding positions, averaging down, or even hedging against adverse trends to recover losses. The latter occupies 4,000 USDT, and we can understand that there are still 6,000 USDT available for trading.
#美国加征关税 #比特币盘整将持续多久？ #币安上线BERA #BNBChainMeme热潮 #比特币后市 $SOL
1. Full Margin Mode: All positions with the same margin assets share the full margin of that asset. In a forced liquidation event, traders may lose all of that margin and all full positions under that margin asset.
2. Isolated Margin Mode: A certain amount of margin is allocated to a position. If the position's margin loss falls below the maintenance margin level, the position will be forcibly liquidated. It is essential to add margin in advance.
To put it more simply, full margin mode allows for shared risk on the contract account assets, while isolated margin mode requires manual addition or reduction of the maintenance margin.
Introduction to the pros and cons of full margin and isolated margin:
1️⃣ In full margin mode, the contract account funds can serve as a reserve for unrealized losses, allowing for reasonable allocation of opening margin, and coupled with setting take-profit and stop-loss, it is relatively difficult to get liquidated.
2️⃣ In isolated margin mode, if you're not careful, you might get forcibly liquidated, or you may not have time to add margin before liquidation, because it can only withstand a small amount of unrealized loss.
For example, with Ethereum around the 3000 mark, in full margin mode, earning about 30 points with 100x leverage could yield a profit equal to 100% of the opening margin, whereas in isolated margin mode, earning about 15 points could yield 100% profit. Thus, isolated margin has higher profits but also higher risks; if you don't have time to add margin, you will face liquidation!
Regarding fund allocation!
Generally, for ultra-short-term positions, allocate 10% of funds, using 100x leverage, as Ethereum requires 300 points to get liquidated, so this allocation is relatively safe. Take-profit and stop-loss should be set, and it is advisable to monitor closely in short-term trading.
For medium to long-term positions, allocating 3%-6% of funds is more reasonable!
The take-profit and stop-loss space for medium to long-term can be larger, while for short-term, the take-profit and stop-loss space can be smaller!
Now let's talk about the pros and cons of high leverage with low margin versus low leverage with high margin trading methods:
For example: Total position of 10,000 USDT
Opening a position of 1,000 USDT with 100x leverage = opening a position of 4,000 USDT with 25x leverage
Their floating profits and losses are the same! However, the former has ample reserve account funds, and without calculating floating profit and loss amounts, we can understand that the former still has 9,000 USDT available for adding positions, averaging down, or even hedging against adverse trends to recover losses. The latter occupies 4,000 USDT, and we can understand that there are still 6,000 USDT available for trading.
#美国加征关税 #比特币盘整将持续多久？ #币安上线BERA #BNBChainMeme热潮 #比特币后市 $SOL
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