Many people play contracts without understanding 'full position' and 'isolated position'!
The reasons for liquidation in the crypto world are countless, and there's a big pit that many have stepped into without realizing it——
Can you distinguish between full position and isolated position?
Simply put, isolated position is like setting a 'firewall' for each trade,
You can only lose as much as the capital you allocated for that trade,
The remaining money in your account is absolutely safe.
For beginners, this is simply a 'lifeline' to protect the principal.
On the other hand, full position sounds appealing
It seems to offer more chances to hold on and 'extend life'
But when the market crashes hard,
It takes all your money to try to stay alive
Not setting a stop-loss and holding on?
That’s like using your account as a gambling table, ready to explode at any moment!
Many people prefer to hold on stubbornly and are unwilling to cut losses,
In full position mode,
It's like burying yourself with a 'time bomb'.
You think you are holding on,
But in reality, your account is being drained step by step, and in the end, you return to square one overnight.
So how do you choose?
1️⃣ If you are new, have limited funds, and want stability,
Choose isolated position; safety first, profit second.
2️⃣ If you are an experienced trader with strict stop-loss rules and want to maximize capital efficiency,
Full position can also be considered, but you must have strict discipline!
There are no absolute rights or wrongs in the market,
Only whether you can survive and whether you can stick to discipline.
Neither of these two modes is better; it’s only about what suits you.
🔥 Don’t let unclear modes become the biggest pitfall for your liquidation!
The road in the crypto world is long; moving steadily is more important than moving quickly.
Good capital management is the key to turning things around!
