When trading futures, you must understand the two modes of 'full margin' and 'isolated margin', or you’ll be taught a lesson by the market in no time. Today, I will explain these two concepts in detail—

Full Margin: Putting all your assets on a single trade
This means that all the money in your account will automatically be used as margin for this trade by the system. Once this trade incurs a loss, the system will directly deduct money from your remaining balance to cover the loss.
For a concrete example: If you have 1000 in your account and open a contract worth 200 but choose full margin mode. If this trade loses the entire 200, the remaining 800 will continue to be used to cover the loss. Even if you correctly predict the market 9 times, just one liquidation could bring you back to square one. This mode is like putting your entire family's savings on a gambling table; winning is great, but losing could leave you with nothing.

Isolated Margin: Each trade is an independent small treasury
When opening each trade, you can only use a specified fixed amount of funds, and you can only lose that amount.
For example, if you want to operate with 200, then only use that 200; the remaining 800 in your account remains completely unaffected. Even if this trade loses everything, the other money is still yours. This mode is like dividing troops in battle; if one battalion is lost, the others can still stand by, with risks fully controllable.

How to choose? Listen carefully
Beginners must choose isolated margin! Don’t argue with me, isolated margin mode maximizes risk resistance. Even if a trade incurs a loss, you still have capital left to recover. Full margin mode? Using it as a beginner is a sure way to lose, especially when the market suddenly crashes, leading to liquidation in no time.
However, for experienced traders, full margin mode also has its advantages—flexible capital allocation and more efficient stop-loss and take-profit operations. But the prerequisite is that you must have sufficient market sense and risk control capabilities; otherwise, you’re just giving money to the market.

These pitfalls must be avoided
If a beginner dares to go all-in on full margin right away, what’s the difference from giving money to the market? Don’t think this is a professional operation; frankly, it’s no different from gambling. First, solidify your trading logic and establish proper risk control before considering using full margin to improve efficiency.

Finally, key points
Full Margin: All funds tied to a single trade, potentially losing everything.
Isolated Margin: Each trade operates independently, and you can only lose the money allocated to that trade.

Understanding the difference between full margin and isolated margin is a significant step towards consistently making money in the futures market. Don’t get confused by the names of the modes; choosing the right mode is ten times more important than blind trading!

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