When opening a contract, I mistakenly chose full position, and when the market turned, my account was wiped out; I used isolated margin but complained that making money was too slow, always thinking about switching modes for a gamble?
In fact, the blame for liquidation often lies not in the market being too fierce, but in your failure to understand the 'life-and-death difference' between these two position modes.
🔔 Isolated Margin: Your money, your call. For example, if your account has 5000U and you only use 500U to open an order, no matter how crazy the market gets, you can only lose that 500U, while the remaining 4500U stays safe. Each trade is an independent 'small battlefield'; losses do not affect other funds, suitable for beginners who want to take steady steps—equivalent to giving your principal an insurance layer; even if you make a wrong judgment, you still have the confidence to turn things around.
🔔 Full Position: The temptation and trap of a one-shot deal.
Using full position to open an order, the system will automatically use all the money in the account to 'fill the pit'. When the market fluctuates slightly, it seems to have a high error tolerance and can withstand larger pullbacks; but once the direction is completely wrong, the money in the account will be squeezed out bit by bit until there’s nothing left at liquidation.
Especially for those who love to hold positions and are too lazy to set stop losses, this is not trading at all; it’s like setting a countdown bomb in your account.
How to choose after all? It depends on your 'steering wheel'.
For beginners or those who haven't formed a trading system, blindly choosing isolated margin—first learn to protect your principal before talking about making money;
Veterans who can strictly execute stop losses can try full position to improve capital efficiency, but remember: stop loss is a lifeline; skipping this step is like running naked.
Contract trading is not about the thrill; it's about longevity. No one is better at full position or isolated margin; it just depends on whether you can master the rules. Want to turn the tide in this market? First, thoroughly understand the position modes; it’s 100 times more reliable than blindly increasing your position. 💪💪💪
🌹 Follow to avoid getting lost! I’ll help you capture potential coin opportunities at the first moment, hitting the rhythm every day; good luck is unstoppable～