So last time i talked about trying to give you a few tricks on how to play around with your trades. So today we are going to talk about margin modes.
Margin mode;
When dealing with margin modes we have two modes that's isolated and cross margin mode, how they apply and how they can help you when trading.
Isolated margin mode,
When trading with isolated margin mode this is what you should know ,
Every position you enter is affected by the same amount of usdt or usdc (margin) you allocate to that trade and with leverage involved, that's you choice of leverage, will help to determine your liquidation point so if the trade clocks 100% in negative you will be liquidated but you will be only losing that position. So for you to trade on isolated you should be good at you entries bcoz any mistake could cause you to loose the position.
For example if u entered a trade with 10 usdt and leverage 20× that's what will determine your liquidation point.
How to manage risk on isolated,
First and most importantly you can set a stop loss this is important.
Secondly if you don't like setting a stop loss, you can increase on your margin by adding more either usdt or usdc to your trade this will extend your liquidation point further that's if u expect the market to turn around after hitting your liquidation point. you can choose to increase on your margin and liquidation point will be extended further but remember this will not affect your profit it will only affect the liquidation point.
So to add more usdt or usdc(margin) there's abutton below your trade that you can click and follow the prompts
That's it for isolated, so tomorrow we shall talk about cross margin mode and which one is more preferable between cross and isolated and in which kind of conditions. You can as well read the pinned post to know exactly what I will be talking about
So if u wanna learn more CLICK THE FOLLOW BUTTON
