In the world of Crypto Assets trading, understanding the concepts of full margin and isolated margin is crucial for managing risk. These two trading modes can determine your survival in the market. Let's break down their differences in a simple and understandable way, and how to choose the strategy that best suits you.

The full position mode can be likened to a bet where "winners take all and losers lose everything." In this mode, all the funds in your account could potentially be the loss of a single trade. For example, if you have 1000 USDT in your account, even if you only use 200 USDT to open a position, choosing full position mode means that in extreme cases, you could lose all 1000 USDT. This is why some say that being liquidated in full position mode could make you "return to square one overnight."

In contrast, the isolated margin mode is more like a cautious risk management tool. In this mode, each trade is independent, and losses are limited to the funds allocated for that trade. If you have an account balance of 1000 USDT and use 200 USDT for isolated margin trading, even if that trade incurs a total loss, you will still have 800 USDT remaining in your account. This method gives you more opportunities to adjust your strategy and make a comeback.

For beginners, the isolated margin mode is undoubtedly a safer choice. It can effectively prevent the situation where a single mistake leads to total loss. Many professional traders also prefer to use the isolated margin mode to finely manage their risks.

However, regardless of which mode you choose, it is important to remember: before starting trading, you must confirm which mode you are using. Some platforms may have the default setting as the full margin mode, and if you accidentally use it, it may bring unexpected huge risks.

Overall, contract trading is a field that requires careful consideration. Understanding and correctly using the full position and margin position modes can help you better control risks and increase your chances of long-term survival and profit in the market. Whether you are a beginner or an experienced trader, you should carefully choose a trading mode that suits you based on your risk tolerance and trading strategy.