Nasan南山
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There are many people who trade contracts, but when asked 'use full margin or isolated margin,' many look confused. What's worse is that some don’t even understand the difference between the two and dare to open positions with leverage, ultimately getting liquidated without knowing what went wrong.
Today, we won’t use complicated terminology; we'll explain these two modes clearly, so you can decide how to choose afterward.
First, let’s look at isolated margin:
In simple terms, isolated margin means that whatever amount you invest in this position is the maximum you can lose.
For example, if you have 5000U in your account and you invest only 500U in this position, even if the market goes against you, you can only lose that 500U at most, without affecting the other funds in your account.
Who is this mode suitable for? It’s suitable for those who want to control risk and prefer a steady approach. You can treat each trade as an independent 'battle'; even if one trade goes wrong, it won’t affect your overall principal.
Now let’s look at full margin:
Full margin means that if this position gets liquidated, the remaining funds in your account will also be lost.
The system will automatically use the remaining funds in your account to 'sustain' the current position until the entire account can no longer withstand, at which point it will all be wiped out at once.
Some people think that full margin has a 'higher tolerance for error,' but in fact, the risk is much greater. Many people using full margin always feel they can 'withstand it,' but when faced with significant volatility, they often end up getting liquidated across the board. Especially for those who like to hold positions without setting stop-losses, full margin is practically a ticking time bomb.
So how should one choose?
If you are still familiarizing yourself with the market or just trying out contracts, prioritize using isolated margin; this is the most direct way to protect your principal.
Once you have your own trading system and can consistently execute risk control, then consider using full margin to improve capital efficiency — but even then, you must set proper stop-losses.
Ultimately, the essence of trading contracts is not to make quick money but to enable you to last longer in the market and move more steadily. Don’t treat your account like a casino; placing heavy bets without knowing where the risks come from is not trading, it’s gambling.
There’s no saying that one mode is 'superior' to the other; it all depends on whether you have the ability to manage them. In this market cycle, whether you can seize the opportunity to turn things around relies entirely on your judgment and actions. If you want to get out of the low point sooner, it’s better to plan carefully with me and layout steadily.
Today, we won’t use complicated terminology; we'll explain these two modes clearly, so you can decide how to choose afterward.
First, let’s look at isolated margin:
In simple terms, isolated margin means that whatever amount you invest in this position is the maximum you can lose.
For example, if you have 5000U in your account and you invest only 500U in this position, even if the market goes against you, you can only lose that 500U at most, without affecting the other funds in your account.
Who is this mode suitable for? It’s suitable for those who want to control risk and prefer a steady approach. You can treat each trade as an independent 'battle'; even if one trade goes wrong, it won’t affect your overall principal.
Now let’s look at full margin:
Full margin means that if this position gets liquidated, the remaining funds in your account will also be lost.
The system will automatically use the remaining funds in your account to 'sustain' the current position until the entire account can no longer withstand, at which point it will all be wiped out at once.
Some people think that full margin has a 'higher tolerance for error,' but in fact, the risk is much greater. Many people using full margin always feel they can 'withstand it,' but when faced with significant volatility, they often end up getting liquidated across the board. Especially for those who like to hold positions without setting stop-losses, full margin is practically a ticking time bomb.
So how should one choose?
If you are still familiarizing yourself with the market or just trying out contracts, prioritize using isolated margin; this is the most direct way to protect your principal.
Once you have your own trading system and can consistently execute risk control, then consider using full margin to improve capital efficiency — but even then, you must set proper stop-losses.
Ultimately, the essence of trading contracts is not to make quick money but to enable you to last longer in the market and move more steadily. Don’t treat your account like a casino; placing heavy bets without knowing where the risks come from is not trading, it’s gambling.
There’s no saying that one mode is 'superior' to the other; it all depends on whether you have the ability to manage them. In this market cycle, whether you can seize the opportunity to turn things around relies entirely on your judgment and actions. If you want to get out of the low point sooner, it’s better to plan carefully with me and layout steadily.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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