欧易编辑部

欧易编辑部

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Differences Between Isolated Margin and Cross Margin in Beginner Contract Tutorials

Understand Full Margin and Isolated Margin in 3 Minutes: How Can Your Funds Lose?#

Must-read for beginners! Today, I will explain the difference between these two key modes in simple language, and after reading, you can at least reduce your losses by 30%!

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1. Isolated Margin Mode#

Isolated margin mode operations are thrilling; your margin is like chips on a gambling table, and losses are limited to that specific trade.
You can simultaneously take long and short positions without interference.

  • Biggest advantage: liquidation only results in the loss of that specific trade's funds, while the remaining funds are safely retained.
  • Suitable for: short-term traders who prefer precise targeting or professional players engaging in long-short hedging.

2. Full Margin Mode: Either Get Rich or Get Liquidated#

In full margin mode, all funds in the account are used as margin; joy when profitable, regret when losing.
All positions are calculated uniformly, providing stronger risk resistance.

  • Biggest advantage: less likely to be shaken out of the market by small fluctuations, suitable for large capital operations.
  • Suitable for: long-term holders with significant funds or professional users engaging in hedging.

Blood and Tears Case#

Xiao Ming and Xiao Hong each invested $2000 to open a 10x long position:

  • Xiao Ming used isolated margin: liquidation price $8000, lost $1000 when it fell to this level, remaining $1000.
  • Xiao Hong used full margin: liquidation price $7000, still supported at $8000, but if it continues to fall... all $2000 lost.
    Key point—
    Full margin is like betting all funds on one table; either a big win or a big loss.
    Isolated margin is like betting at separate tables; one table can lose while the other continues.

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【Real Stories of Getting Rich in the Crypto World】Many people ask me how I went from 0 to 11 million and then to a debt of 100,000 after years of trading coins?

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