At 3 a.m., I received an urgent call from a friend. The other side's voice was very hurried: "I used 10,000 USDT to open a 20x long position with full margin. It only retraced 5%, and my account was wiped out. I totally don't understand what happened."

After reviewing his trading records, the problem was obvious—full margin with 20x leverage, and no stop-loss set at all. This is a classic case of risk control failure.

Many traders have a misconception that "full margin mode" means they can withstand larger fluctuations. The result is often the opposite—improper full margin operation causes losses to accelerate much faster.

**The real culprit behind liquidation: not leverage multiple, but position size ratio**

Taking a 1000U account as an example:

If you use 900U to open a 10x leverage position, a mere 5% adverse move can directly wipe out the account. But with the same 10x leverage, using only 100U, it takes a 50% move to trigger liquidation. The problem lies here—he put 95% of his principal into the position, leaving no room for minor retracements.

**Three core principles for long-term stability**

*Single position should not exceed 20% of total account funds*

Based on 10,000U, the maximum single investment is 2,000U. Even if the market moves against you, setting a 10% stop-loss means a maximum loss of 200U, which is limited to the principal, giving the market a chance to turn around next time.

*Limit single loss to within 3% of total account funds*

For example, using 2,000U to open a 10x leverage position, with a preset 1.5% stop-loss, a triggered stop-loss results in a 300U loss, exactly 3% of the account. Even if you make several wrong calls in a row, it won't damage the core capital.

*Avoid opening positions during sideways consolidation; only trade on clear trend breakouts*

Only enter trades when there is a clear directional trend. Even if the market is sideways and tempting, hold back. Never add to a position after opening it; emotions are the biggest enemy in trading.

**The essence of full margin: risk control tool, not a gambling tool**

The original intention of full margin mode is simple: to reserve enough tolerance for market volatility. But the prerequisite is to trade lightly and implement strict risk control—both are indispensable.

A follower once kept falling into a vicious cycle of liquidation before adjusting his position strategy. After following these three principles for three months, his account grew from 5,000U to 80,000U.

He later said something very insightful: "I used to think full margin was just gambling my life. Now I realize, full margin is actually about surviving longer."

In this circle, it’s not about who makes money faster, but who survives longer. Spend less time guessing the market direction, and focus more on position management. It may seem like slowing down, but in fact, it accelerates wealth accumulation.

The market is always there; opportunities will not disappear. Make your risk control solid, and the rest is patience and execution.