The difference between isolated margin and cross margin in contract trading:

I see newcomers asking why there are isolated margin and cross margin, what the difference is, and which one is more suitable to open?

Here's a simple overview for newcomers to reference:

In isolated margin mode, the position of each contract trading pair is independent, and the margin is only allocated to that position, not shared with other positions. You can supplement or reduce the margin at any time, but of course, reducing the margin can only be done if there are profits.

Therefore, isolated margin is suitable for short-term trading or users who want to strictly control the risk of a single position. At the moment of placing an order, it is equivalent to setting a stop-loss point, making it suitable for beginners, preventing overall liquidation when the direction is chosen incorrectly.

In cross margin mode, all available balances in the account can be used as margin and are shared among all positions. The profits and losses of all positions will be summarized, and the account balance will be dynamically adjusted to avoid liquidation.

Therefore, cross margin is suitable for long-term trading or users who have strong confidence in the market. Of course, in cross margin mode, stop-loss and take-profit points can be set to control the position. The risk factor is higher, as a significant loss in one position may lead to the liquidation of the entire account.

Usually, I use both together; when I have less confidence or clear entry points, I will use isolated margin to take small risks for larger rewards, and after using isolated margin, I try not to add margin. Once you add it once, there will be a second time, which may ultimately lead to greater losses.

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