📌 Full Margin: All funds in the account are at stake

When opening a position, all funds in the account will be considered as collateral for the transaction. Once a loss occurs, not only will the initial invested funds be wiped out, but other funds in the account will also be automatically used to cover the deficit.

For example: the account has 1000 yuan, using 200 yuan to open a position and choosing the full position mode. If this trade incurs a loss, after the 200 yuan is exhausted, the remaining 800 yuan will continue to be used to cover the loss. In extreme cases, a single liquidation may cause all funds to become zero.

📌 Isolated Margin: Limited liability for single transaction
Each trade uses a fixed amount of funds, and the maximum loss is just this amount of money. Other funds in the account do not participate in this trade and remain safe.

For example: If you open a position with 200 yuan and choose the isolated margin mode, even if this trade incurs a loss, you will only lose that 200 yuan at most, and the remaining 800 yuan in your account will not be affected. It's like dividing troops for battle; the defeat of one unit does not impact the other units.

🧠 How to choose?

- Beginners should prioritize isolated margin: it has strong risk resistance, allowing for remaining funds to be available for operation after a loss on one order, providing beginners with enough space for trial and error and adjustment.
- Experienced traders may use full positions: they can flexibly allocate funds, improving the efficiency of stop-loss and take-profit operations, but this requires a very high level of risk control.

⚠️ Warning to avoid pitfalls

- Beginners should not blindly use their entire account to "go all in"; it may seem professional, but it is no different from gambling, and during periods of significant market volatility, it can easily lead to total loss.
- First, establish a solid trading foundation, implement risk control, and then consider whether to use full margin to improve efficiency based on your capabilities.

In short, contract trading carries high risks. Newcomers should start with isolated margin trading and prioritize risk control, which is much more important than pursuing "efficiency."