At dawn, messages kept coming in—someone else had been stopped out in a contract trade. A trader sent a screenshot showing a startling account balance: $6,000 vanished in just a few minutes. Looking closely at the trading record, the pattern was familiar: full leverage, no stop-loss, and a slight market correction wiping everything out.

Her trading logic seemed sound:投入全部5800U，开5倍多单，想着能翻倍收益。But what happened? Bitcoin dropped 3%, and her account was wiped out instantly. This isn’t an isolated case; every day, people fall into traps choosing between full position and isolated margin.

Many beginners have huge misconceptions about full margin, thinking "the more capital used, the more you earn." But in reality, full margin mode is like a runaway race car—once the steering is off, you can’t stop.

**The True Nature of Full Margin**

In full margin mode, all available balance in your account is used as margin. If one position loses, the system automatically deducts from your total account funds to maintain the position and prevent liquidation. It sounds like it improves capital efficiency, but the problem is that risk is also amplified infinitely.

Any extreme market movement or black swan event could wipe out your entire account in one go. The final result? All positions are forcibly liquidated simultaneously. You have no time to react, no chance to cut losses, and your account can go from positive to negative instantly.

**The Protective Mechanism of Isolated Margin**

Isolated margin works differently. Each position is allocated its own margin, completely separated and independent. If one position blows up, at most, you lose the initial margin allocated to that position. The other positions and your account funds remain safe.

What does this mean? It means you have a buffer, an opportunity to adjust, and you won’t be wiped out by a single mistake.

**Data Speaks**

Historical data shows that an 8% crash in Bitcoin isn’t rare. Such volatility can destroy most positions without stop-loss in full margin mode. But in isolated margin mode, while a single position might be liquidated, the rest of your account remains intact.

That’s why professional traders prefer isolated margin: they use time and patience to make money, rather than gambling their entire account.

Returning to the story of that $6,000, if you had used isolated margin and set reasonable stop-losses, the loss could have been kept within a predictable range. But full margin + no stop-loss? It directly handed your account over to the market.

Choosing a margin mode isn’t just a technical decision; it’s a matter of risk awareness.