1. What is margin trading?
Margin trading involves posting collateral, or margin, to trade an amount larger than that collateral. It is a foundation of futures trading.
2. Cross versus isolated margin
📊 Comparison
Cross margin:
• The entire balance serves as collateral.
• A more distant liquidation price can appear safer.
• The source warns that liquidation can cause loss of the entire balance.
Isolated margin:
• Only the position's assigned margin serves as collateral.
• Liquidation loses that assigned margin in this comparison.
• The source strongly favors it for beginners.
3. Margin-management principles
- Use no more than 10% of total capital as margin in the source's framework.
- Always use isolated margin according to the guide.
- A stop loss is essential; exit before liquidation.
4. AI margin management
The original guide describes NOONOO TRADING as using isolated margin and automatically closing positions before liquidation through ATR-based management.