A must-see for newbies, understand the difference between full margin and cross margin in one minute.

Family, today I must talk to you about two particularly key concepts in cryptocurrency trading - Full Position and Isolated Position! Don't be fooled by the names being just two characters different; the operational differences can be quite significant, especially in terms of their impact on our wallets, which is no small matter. Newbie friends can easily fall into pitfalls if they don't understand, and even experienced traders need to switch flexibly according to the situation, so you all need to keep this article in mind!
Let's talk about the full margin mode. Simply put, all the money in your account, whether it is the principal you just deposited or the profits you earned earlier, will be treated as a "big pool". All the positions you open will use the money from this pool as margin.
For example, it's like having all your savings in a drawer at home; whether it's for buying groceries, paying rent, or enrolling your child in tutoring, you take money out of this drawer, and how much you spend depends on how much is left in the drawer.
The benefits of this model are quite obvious, with a high utilization of funds! For example, if you are bullish on a certain coin and open a long position, but then another coin accidentally drops a bit and incurs a small loss, it’s fine; the profits you made earlier or other funds in your account can help you withstand it. As long as there is enough money in the big pool, you don’t have to worry about this small loss directly causing you to get liquidated.
So in a market where the trend is particularly obvious, like during a bull market, using all your funds is particularly effective, allowing you to make the most of your capital and earn more.
But its risks also need to be mentioned, as we fear a "roller coaster" in the market. If you have a high leverage, such as 20x or 50x, and suddenly encounter a major market crash, all positions may incur losses at once, and the entire pool of money could be almost wiped out in an instant. In severe cases, it could even lead to a negative balance, meaning you lose more than your principal. At that point, the exchange may liquidate all your positions to stop the loss, which would indeed leave you in tears.
Let’s talk about the isolated margin mode, which is easier to understand. The margin for each trade is independent and managed separately, with no connection to one another. When you open your first position and set 1000 as the margin, the outcome of this trade, whether profit or loss, only relates to that 1000 and will not affect other funds in your account.
It's like you opened a separate bank card for each person in the family. The husband's card is responsible for paying the mortgage, the wife's card is for daily expenses, and the child's card is for saving for education. They don't interfere with each other; when one card runs out of money, the others can still be used as needed.
The biggest advantage of this model is that it isolates risks particularly well! It is suitable for friends who like to try new strategies. For example, if you want to try short-term contracts or experiment with a small amount of capital, even if you lose this trade, it won't affect your other positions and funds, which is equivalent to putting a "safety lock" on your wallet.
Moreover, its leverage is particularly flexible; you can set one position to 5x leverage and another to 10x leverage, entirely based on your own judgment.
However, isolated margin trading has its troublesome aspects, particularly its weaker risk resistance. Because the margin is independent, if the market moves against you and you lose almost all the margin for that position, it won't draw funds from elsewhere to cover it, leading to an immediate liquidation. That margin can be wiped out in an instant, so when using isolated margin, you must carefully calculate whether the margin is sufficient and avoid being too impulsive.
So how should one choose? In fact, there is no absolute good or bad, it all depends on your trading strategy and judgment of the market situation.
If you have a strong grasp of the upcoming market trends, such as feeling that a bull market is about to arrive, and want to fully utilize your funds to earn more returns, then going all-in is definitely the best option, allowing your capital to work to its fullest potential.
But if you want to try new trading strategies, or enjoy high-leverage short-term trading, or just want to make a little money to test the waters, and are afraid that one mistake could cost you all your money, then isolated margin trading is more suitable for you. It can help you control the risk within a certain range, and even if you incur losses, it won't be catastrophic.
In short, the full position and the isolated position are like two "weapons" in cryptocurrency trading; neither is better than the other. The key is to see when and how you use them. Newbie friends can try more at the beginning and slowly find a model that suits them.