Want to understand how to trade with contracts? The first hurdle is choosing a mode—full position or isolated margin. Both have their own nuances, and the key is to figure out which suits your trading style best.

**Full Position Mode: Make Every Penny Count**

The biggest selling point of this mode is the shared margin. All the margin in your account can be used for any position, without freezing funds for each individual order. This means you can leverage less capital to control larger positions. For example, if your account has 100U, in full position mode, this 100U can support all open positions, rather than being split and locked.

Another advantage is hedging effectiveness. You can hold both Bitcoin long and Ethereum short positions simultaneously—when one loses and the other gains, you can offset losses in real-time. During short-term volatility, this can effectively delay liquidation risk. This tactic is especially useful when the market is diverging—allowing you to buy the dip and short at the same time, balancing profits and losses.

Operationally, it’s also simpler. You don’t need to adjust margin for each position individually; just modify the total account balance to adjust overall risk. For experienced traders with good market sense, this approach is more efficient.

**Isolated Margin Mode: Risk Isolation, Stability First**

This mode’s name says it all—each position has its own margin, independent of others. You might allocate 20U for a Bitcoin long and 30U for an Ethereum short, with each position’s profit and loss calculated separately. If one position gets liquidated, only that position’s capital is lost, without affecting others. Losses are fully controllable.

It’s especially friendly for beginners. Since risks are naturally isolated, you can continue holding other promising positions even if one gets liquidated. You won’t be forced to wipe out your entire account due to a single mistake. The status of each position is clear—know when to stop loss or add to a position, with a logical approach.

It also offers more fault tolerance. If you make a wrong judgment on one trade, you can rely on the profits from other positions to stabilize your overall rhythm, without having to reset everything after a mistake.

**How to choose?**

Ultimately, full position mode tests your risk awareness and hedging skills, making it suitable for experienced traders; isolated margin mode is a more conservative, stable choice—better for beginners and traders who prefer multi-threaded operations.