**Full Margin vs Isolated Margin: A 1-Minute Survival Guide for Crypto Leverage**
Trading with leverage? Not understanding these two margin modes can wipe you out fast. Here’s the breakdown—simple, quick, and life-saving.
### **Full Margin: All Funds Shared**
- Your entire account balance acts as collateral for **all** open positions.
- Like pooling all your money into one wallet—profits and losses affect everything.
- **Pros:** Better resistance to small market swings (good for strong trends like bull runs).
- **Cons:** One big loss can liquidate **all** positions. High risk during volatility or black swan events.
### **Isolated Margin: Risk Locked Per Trade**
- Each position uses its own separate margin. If one fails, the rest stay safe.
- Like dividing cash into envelopes—losing one doesn’t touch the others.
- **Pros:** Limits losses to individual trades (ideal for testing strategies or high-leverage plays).
- **Cons:** Less buffer against price swings—liquidation happens faster without backup funds.
### **When to Use Which?**
- **Full Margin:** Confident in a strong trend (e.g., a bull market) and want max capital efficiency.
- **Isolated Margin:** Short-term trades, high leverage, or protecting your account from total wipeout.
**Pro Tip:** Newbies, start with isolated margin. Master risk control before "going all in." In crypto, survival = opportunity.
**TL;DR:** Full margin = "All-in teamwork." Isolated margin = "Divide and protect." Choose wisely!
