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89% of futures traders are liquidated in their first month. I was one of them, staring at a screen while my entire account balance evaporated in a single $PEPE flash crash. I didn't understand the difference between isolated and cross margin until the moment my $BTC long position took my entire $5,400 savings down with it. That is the reality of cross margin: it treats your entire wallet as collateral. If you are in a $100 trade on $BTC with $5,400 in your account and you use cross margin, the exchange will drain every single cent of that $5,400 to keep the position alive as the price drops. You aren't just risking the trade; you are risking your livelihood.
Isolated margin is the only way for a trader to keep their sanity. If I...