Many people dare to leverage when trading contracts without even understanding the basic models, opening positions based on feelings, relying on forgetting for stop loss, and when they get liquidated, they are still confused: "I clearly only invested a little, how come all the money is gone?" Today, I will explain fully about full position and incremental position—

Isolated margin is the "risk boundary" model: the margin set when opening a position is the maximum loss limit. For example, if you invest 500U to open a position, even if the market moves against you, once you lose that 500U, it will automatically liquidate, and the other funds in your account will remain intact. Independent risk control and steady progress make it a "safety shield" for beginners to protect their principal.

The full position is a "shared risk" model: after opening a position, the system treats all the funds in the account as a "backing". When the market fluctuates, it uses leftover money to bear the losses. It seems to have a high fault tolerance, but in reality, it hides a danger - if the position does not implement a stop loss, once the market reverses beyond expectations, the originally small position's losses can snowball and drag down the entire account. In the end, cases of "losing the entire account due to a single position" are too common, and it can be described as "a time bomb of gambler-style operations."

How to choose? Beginners should definitely opt for isolated margin to practice judgment first and then control risks, ensuring that every trade has an "exit"; experienced traders with mature systems who want to improve efficiency can try using cross margin, but remember: the "efficiency" of cross margin is always based on strict stop loss. If you don't have this habit, don't touch it; otherwise, you're just pushing your account into risk.

Contract trading is not about making a one-time profit, but rather the ability to survive in the long term. There is no good or bad in using full margin or isolated margin; it all depends on whether you can manage the risk. Market opportunities are frequent, but those who can seize them are always the ones who have solidified their foundation and implemented good risk control — understanding the rules early on allows you to steadily catch opportunities when they arise.