Let me explain the difference and operation of full margin and isolated margin, as well as take profit and stop loss, in simple terms. A must-read for newbies!

1. Full position mode: either get rich or go to zero
Full position, which is the gambler mode - all the money in the account is tied together, sharing both glory and loss.
Advantages: High capital utilization rate and strong ability to withstand fluctuations. If the market experiences a brief pullback, a full position can help you hold on longer.
Fatal flaw: Once a position blows up, the entire account is instantly wiped out, leaving no chance for recovery.
Who is it suitable for?
Well-capitalized big players can withstand severe fluctuations.
Short-term expert, precise timing, quick in and out.
Who is it not suitable for?
Newbie with small funds (extremely high risk of liquidation).
Newbie with an unstable mindset (a single mistake directly leads to zero).
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2. Isolated margin mode: there is a bottom line for losses, and liquidation does not entail joint liability.
Isolated margin refers to "position management", where each position calculates profit and loss independently, and the liquidation of one does not affect the others.
Advantages: Risks are controllable, and you won't be wiped out completely due to one position blowing up.
Disadvantages: Low capital utilization rate, weak holding capacity, and容易被短期波动洗下车.
Who is it suitable for?
Conservative traders, who do not want to go all in.
Strategy testing period, use small funds to experiment.
Here’s a 🌰:
You have 1000 USDT, in full position mode, if one position loses 500, the platform will deduct it from your 1000.
But if it's a isolated margin, you allocate 500 USDT to each of the two positions, if one blows up, the other 500 is still there!
3. take profit stop loss: Don't wait for the market to slaughter you, set your exit strategy first!
take profit = cashing out at the right time, securing profits.
stop loss = recognize loss and exit, avoid liquidation.
But many people die just because they don't know how to set take profit and stop loss, and in the end, they get taken away by the market in one wave.
Latest Price vs. Mark Price: Which is more reliable?
✅ Latest Price = Market Real-Time Transaction Price, highly volatile, suitable for short-term players.
✅ Marked price = "Smooth price" calculated by the platform, reducing the risk of spike liquidations, suitable for long-term holding.
How to choose?
Quick in and out → Use the latest price, react quickly, but it's easy to be wrongly killed by a spike.
Want to be more stable → Use the marked price to reduce short-term volatility interference, but may miss the best take profit point.
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4. The ultimate survival rule: Don't let the market determine your life or death!
Full position = high risk high return (suitable for veterans, but don't be greedy).
Cross margin = low risk steady income (suitable for newbies, but don't expect to get rich quickly).
take profit stop loss = the lifeline of trading (not set? The market will teach you how to be a person in minutes).
Remember:
"The market won't kill you, but your greed will." Control your position and set stop losses to survive in the crypto space!
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