Among those who trade contracts, many do not even understand the difference between full margin and isolated margin. They blindly open positions with leverage, and when they get liquidated, they are still in the dark about where the problem lies. Today, I will thoroughly explain these two modes:

The logic of isolated margin is very clear: you can only lose as much as you invest. For example, if your account has 5000U and you only use 500U to open a position, even if the market suddenly reverses, you will only lose that 500U, while the other funds remain safe. This model is suitable for those who want to keep risks under control and proceed cautiously, managing each position separately, so that a fluctuation in one position won't affect the entire portfolio.

Using full margin is completely different: once liquidation is triggered, all the remaining funds in the account will go down the drain. The system will automatically ‘fill the hole’ for the current position with the account balance until it can't hold on anymore, losing everything including principal and interest. On the surface, it seems like there is a lot of room for error, but in reality, it hides a high risk—especially for those who stubbornly hold on and do not set stop-loss orders; it’s like a bomb that could explode at any time.

How to choose? For beginners or those new to contracts, it is advisable to choose isolated margin first, which directly provides "insurance" on the principal; once you have a mature trading system and can manage risk meticulously, consider using cross margin for efficiency, but the stop-loss string must be tightened.

Ultimately, playing contracts is not about being impulsive for a moment, but about lasting long and moving steadily. Don’t treat your account as a gambling table. There is no superiority between full margin and isolated margin; the key is whether you can manage it. Whether this round of market can turn around ultimately depends on yourself—planning ahead allows you to step out of the trough earlier.