What is isolated margin? — "Qiu Ge's safe"

Core: Your money, kept separate! The amount you use (margin) to open a position is the maximum you could lose!

For example: You have 2000U in your account, bullish on ETH, taking out 1000U to open a 10x long position (isolated margin mode).

Worst case: The market crashes, and your 1000U position is liquidated! BUT! The other 1000U in your account is as stable as a rock, not a penny lost! Time for hot pot!

Advantages:

Risk locked in! You know how much you could lose, which makes sleeping a bit easier (though you might still have insomnia).

Dual strategy! You can simultaneously open long and short positions (for example, for hedging), they crash independently and do not affect each other!

Disadvantages:

Easy to get liquidated! Especially if leverage is too high, even a slight price fluctuation can make it feel like it's made of paper, and just like that, it's gone!

What is all-in? — "Qiu Ge's ALL IN"

Core: Your money, together! All the money in your account serves as the 'backup army' for this position!

For example: It's still you, with an account of 2000U, bullish on ETH, opening a 10x long position (this time selecting all-in mode).

Worst case: The market has crashed again! This time, your position hasn't been liquidated temporarily, why? Because the remaining 1000U in your account automatically went up to cover the loss! Price continues to drop? All the money in your account (2000U) could potentially be wiped out together! How about a zero balance gift package?

Advantages:

Resilient! When volatility is high, it’s not so easy to get liquidated, suitable for slowly grinding in a sideways market, or if you’re using some grid strategy or hedging.

Disadvantages:

All-in risk! If the direction is wrong + market is extreme (like a black swan), your account could be wiped out completely! Just thinking about it hurts!

Ultimate PK case:

You and your good friend Xiaoming both have 2000U and both open 10x long positions on BTC.

You (smart choice with isolated margin): Only use 1000U to open the position.

Xiaoming (all-in mode): Betting the entire account of 2000U!

Result: BTC plummeted!

You: The 1000U position has been liquidated, but there's still 1000U in the account! Although it hurts, you can still make a comeback; treat Xiaoming to a bowl of instant noodles for comfort.

Xiaoming: The position hasn't been liquidated yet, but the account already shows a loss of 1000U! If it continues to drop, the 2000U might all be gone! But what if there’s a miraculous rebound? It might recover or even make a profit! (But at this moment, Xiaoming might already want to strangle you)

#看懂K线

Join our cryptocurrency bottom-fishing army, you will not be fighting alone, whether it's a slow bull or a fast bull, don’t be afraid, the opportunity to bottom-fish is here, the cryptocurrency doubling plan is about to start, doubling is not a dream!

$BTC