I recently came across the experience of a crypto trader that sent chills down my spine—full margin bet of $10,000 USDT on a 10x leverage, and when the market only slightly retraced by 3%, the account was instantly liquidated to zero.

Looking at his trading records, it’s even more despairing. He entered with $9,500 USDT all at once, without setting any stop-loss, and without any reserve funds. A classic gambler’s mindset.

Many beginners are misled by a false illusion: "Full margin can resist dips better." In reality, this is the biggest misconception.

In full margin mode, the margin utilization rate hits 100%, and the liquidation line becomes extremely sensitive. Just a slight market fluctuation of a few points can trigger liquidation immediately. The risk is much higher than with isolated margin. The key isn’t how deadly leverage itself is, but that you’ve committed all your principal, leaving zero room for error.

Let’s do some quick calculations to clarify:

**Scenario 1:** $1,000 principal, using $900 with 10x leverage. A 5-point adverse move hits the liquidation line.

**Scenario 2:** $1,000 principal, using only $100 with 10x leverage. It takes a 50-point adverse move to trigger liquidation.

Is the difference so huge? Is it really because the market conditions are different? No. The problem lies in position management.

Traders who truly survive do so by managing full margin positions with strict rules to lock in risk. I’ve summarized three ironclad rules, which have kept me alive until now:

**First:** No single position exceeds 20% of total funds. For example, with $10,000 USDT, never invest more than $2,000. Even if this position hits a 10% stop-loss, the loss is only $200. The market is always there; losing $200 still leaves room to recover.

**Second:** Limit single-loss to within 3%. Always set a stop-loss before opening a position. Don’t wait until you’re in the trade to decide where to stop; by then, your mind is already clouded.

**Third:** Only trade trend breakouts; stay out of choppy sideways markets. Don’t add positions impulsively when profitable; if emotions take over, stop immediately.

A follower once told me he used to get liquidated every month, cycle after cycle. But after mastering these three rules, he turned $5,000 into $30,000 in just three months. Even he couldn’t believe it.

In crypto, it’s never about who can run faster; it’s about who can survive longer. The market is eternal; it will always be there. What truly determines life or death is whether you can manage your positions well and catch the right rhythm. Being slow can actually be the fastest way to make money.

Want to break free from the liquidation cycle? Start now by ingraining these position rules into your bones. This isn’t just hype—it’s a battle-tested strategy earned through blood and tears.