When opening a contract, it lets you choose between “isolated margin” or “cross margin.” Many beginners just click without thinking, and end up suffering a huge loss.
【Cross margin】 All available balances in the account are used as margin. Advantages: liquidation is farther away, and it’s less likely to be blown up;
Disadvantages: if the market becomes extremely volatile, the loss could wipe out your entire account. It’s like putting all your eggs in one
The baskets support each other.
【Isolated margin】 Only allocate a specific amount of money to this position. If this position gets liquidated, the maximum loss is limited to that portion,
It won’t spread to other positions or principal. Risk is kept contained in a cage.
【My advice】 Beginners should use isolated margin (one position at a time). The reason is simple: you don’t yet have the ability to assess the worst-case scenario of a single bad trade,
How much did you lose? Then use the system to lock in the maximum loss. Once you’ve learned position management and continuous three...
months of steady profitability, then consider going all-in—it’s still not too late. In the market, staying alive matters a hundred times more than getting rich quickly.
What do you think? Share your experience in the comments.