If you are a novice and want to play contracts, you must read these!!!

In the contract, what is the difference between position-by-position and full position? What is margin?

Position-by-position:

Position-by-position is like you have multiple independent piggy banks, each corresponding to a contract transaction.

For example, you have three piggy banks, each containing money prepared for contracts A, B, and C. If contract A loses money, only the money from its corresponding piggy bank will be used to make up for the loss, and the money in other piggy banks (contracts B and C) will not be used.

Full position:

Full position is like you put all your money in a big wallet, and all contract transactions take money from this big wallet.

If you have 1,000 yuan in your big wallet and make several contract transactions at the same time, if one of the contracts loses a lot, you will continue to take money from the 1,000 yuan to make up for the loss, which may affect the money in the entire big wallet.

Margin:

Margin is like the deposit paid to the landlord when renting a house.

When renting a house, if you abide by the agreement, the deposit will be returned at the end of the lease; if you damage something, the landlord will deduct compensation from the deposit.

The same is true for contract transactions. When you make a profit, the deposit is intact and you can still make a profit; when the loss reaches a certain level, the platform will deduct money from the deposit, and you may lose it all, or even need to make up for it.

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