The cryptocurrency contract may seem simple, but many people do not understand full margin and isolated margin, and as soon as they use leverage, they face liquidation!
Isolated Margin: The bulletproof vest for the prudent
Whatever you invest, you can only lose that amount at most, without affecting other funds in the account.
For example, with an account balance of 5000U, using 500U for isolated margin, even if the market moves against you, you only lose 500U, leaving 4500U safe.
Suitable for beginners or traders who prefer a steady approach; a mistake on a single trade does not affect the overall situation and is the first choice for protecting the principal.
Full Margin: A high-risk life-and-death situation
Once the market goes out of control, the system will use all funds in the account to stay alive until the balance goes to zero! Many people are deceived by the illusion of high tolerance for errors; the cryptocurrency market is highly volatile and can instantly wipe out an account, especially for those who love to hold positions and do not set stop-loss orders; full margin is a ticking time bomb.
How to choose?
Beginners or those unfamiliar with the market: Start with isolated margin to protect the principal for the long term.
Experienced traders: When you have a stable system and risk control, you can use full margin to improve efficiency, but a stop-loss must be set!
Final reminder: Contracts are not about gambling on size, and accounts are not casinos; going heavy without understanding the risks is gambling with your life!
Making money in the cryptocurrency space relies on information and strategies, and retail investors without resources are easily cut off.
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