Is it better to do full position or position by position contract?
In full position mode, open 1000U margin, 100X
In position by position mode, open 1000U margin, 100X
The two have the same income, but different forced liquidation prices!
The forced liquidation price of full position mode depends on the total position of your contract account. The larger the total position, the farther your forced liquidation price will be! You can open multiple orders of different categories, and the assets of the contract account are shared. The forced liquidation price is based on the forced liquidation price that arrives first. After the forced liquidation is triggered, all funds in the contract account will be reset to zero.
The forced liquidation price of the position by position mode is determined by the position margin of your single order. If you want to extend the forced liquidation price, you must continue to add more margin to the order! You can open multiple orders of different categories. The assets of the contract account do not share the market. The forced liquidation price of each order is calculated independently according to the margin of each order. After the forced liquidation price is triggered, only the margin of your order is stopped separately, and other orders and other funds in the contract account are not affected.
❤️❤️ Summary:
Advantages of the full-position mode: It is suitable for single orders of a single category. The forced liquidation price is far away, and there is a greater chance to carry back the average price or turn losses into profits. It is convenient to make up orders and pull the average price!
Disadvantages of the full-position mode: It is not recommended to open orders for multiple categories. The shared margin mode makes the forced liquidation price of any category in multiple categories cleared to zero, especially many small altcoins frequently plug in, which can easily affect our normal positions!
Advantages of the position-by-position mode: You can open multiple orders for multiple categories. The forced liquidation triggered by any order does not affect other orders or the total position of the contract account!
Disadvantages of the position-by-position mode: The forced liquidation price is relatively close, mainly based on your position margin and leverage multiples to give you the forced liquidation price. In order to avoid forced liquidation, you can only continuously inject margin, which can easily turn a small loss into a big loss, and a big loss into a huge loss. You need to keep a close eye on the forced liquidation limit and market trends!
❤️ Summary:
The position is relatively sufficient, the entry category is single, and the full position is used!
The position is small, the entry category is diverse, and the position-by-position is used!
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