The most confusing question for newbies in contracts: isolated margin vs cross margin, choosing the wrong one will directly liquidate your account.

There are two types of margin modes in Futures Trading, but many people do not understand it and often make the wrong choice, leading to inexplicable losses.

Cross Margin Mode: All the money in your account can be used to support a losing position. If one position incurs a loss, the system automatically adds Margin from other idle funds, which is equivalent to “buying the dip”. Sounds good? But this is a double-edged sword – if the market moves against you violently, it could burn your entire account.

Isolated Margin Mode: The maximum loss of a position is just the amount of money you allocate to it, while other funds remain untouched. Safe, right? But the cost is that you have to manually add Margin, and if you're not careful, you could be liquidated, with all the risk control pressure on yourself.

Real Example: Both have a principal of 2000U, taking 1000U to open a 10x BTC long position.

• Isolated Margin Guys: BTC dropped to the liquidation price, lost 1000U and got liquidated, the account still has 1000U.
• Full Margin Brother: BTC dropped by 1000U, the system automatically added Margin, and the position is still alive. BTC rebound? Turnaround; continue to drop? Directly blow up the account, all 2000U.

How to choose? Beginners should not be greedy; isolated margin is safer. Experienced traders can take the risk; full margin can amplify profits. But remember: if the risk exceeds 100%, liquidation will occur, and there is no negotiation.

There's another detail: you cannot switch between the two modes when placing an order, and you cannot change the leverage, so be careful not to fall into this trap.