Is it better to do cross margin or isolated margin for contracts?
In full-margin mode, open 1000U's Margin, 100X In isolated margin mode, open 1000U of Margin, 100X Both have the same profit, but the liquidation price is different! The Liquidation price in full position mode depends on the total Position of your contract account. The larger the total Position, the further away your Liquidation price! You can open multiple orders of different categories, and the assets of the contract account are shared. The Liquidation price is based on the first Liquidation price reached, and after Liquidation is triggered, all funds in the contract account will drop to zero. The liquidation price in isolated margin mode is determined by the HoldingsMargin of your single order. To increase the liquidation price, you need to add more Margin to the order. You can open multiple orders of different categories. The assets of the contract account are not shared. Each order has an independent liquidation price calculated based on the Margin of each order. After the liquidation price is triggered, only the Margin of the order will be stopped independently, without affecting other orders or other funds of the contract account. ❤️❤️Summary: Advantages of full position mode: suitable for single-category single-order transactions, with a relatively far liquidation price, there is a greater chance of recovering the average price or turning losses into profits, and it is relatively convenient to add orders to pull the average price! Full position mode disadvantages: It is not recommended to open orders for multiple categories. The mode of sharing Margin will cause all positions to be cleared when the Liquidation price of any category is triggered, especially when many small altcoins frequently have Long Wick Candle, which can easily affect our normal Holdings! Advantages of Cross Margin Mode: You can open multiple orders of multiple product types, and triggering Liquidation on any order will not affect other orders or the total Position of the contract account! Disadvantages of Cross Margin mode: The Liquidation price is close, mainly based on your HoldingsMargin and leverage to give you the Liquidation price. In order to avoid Liquidation, you can only continuously inject Margin, which is easy to turn small losses into big losses and big losses into huge losses. It requires you to constantly monitor the Liquidation limit and market trends! ❤️Summary of the essence: Sufficient Position, single entry category, use ! Position is small, with a wide variety of entry categories, use cross margin!
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Is it better to do cross margin or isolated margin for contracts?
In full-margin mode, open 1000U's Margin, 100X
In isolated margin mode, open 1000U of Margin, 100X
Both have the same profit, but the liquidation price is different!
The Liquidation price in full position mode depends on the total Position of your contract account. The larger the total Position, the further away your Liquidation price! You can open multiple orders of different categories, and the assets of the contract account are shared. The Liquidation price is based on the first Liquidation price reached, and after Liquidation is triggered, all funds in the contract account will drop to zero.
The liquidation price in isolated margin mode is determined by the HoldingsMargin of your single order. To increase the liquidation price, you need to add more Margin to the order. You can open multiple orders of different categories. The assets of the contract account are not shared. Each order has an independent liquidation price calculated based on the Margin of each order. After the liquidation price is triggered, only the Margin of the order will be stopped independently, without affecting other orders or other funds of the contract account.
❤️❤️Summary:
Advantages of full position mode: suitable for single-category single-order transactions, with a relatively far liquidation price, there is a greater chance of recovering the average price or turning losses into profits, and it is relatively convenient to add orders to pull the average price!
Full position mode disadvantages: It is not recommended to open orders for multiple categories. The mode of sharing Margin will cause all positions to be cleared when the Liquidation price of any category is triggered, especially when many small altcoins frequently have Long Wick Candle, which can easily affect our normal Holdings!
Advantages of Cross Margin Mode: You can open multiple orders of multiple product types, and triggering Liquidation on any order will not affect other orders or the total Position of the contract account!
Disadvantages of Cross Margin mode: The Liquidation price is close, mainly based on your HoldingsMargin and leverage to give you the Liquidation price. In order to avoid Liquidation, you can only continuously inject Margin, which is easy to turn small losses into big losses and big losses into huge losses. It requires you to constantly monitor the Liquidation limit and market trends!
❤️Summary of the essence:
Sufficient Position, single entry category, use !
Position is small, with a wide variety of entry categories, use cross margin!