Recently, someone asked me how to choose between full position and incremental position. So I’ll organize my understanding here.

First, let’s talk about full position. Full position is like gambling mode: all your funds are tied together in one account, sharing both gains and losses. The advantage is that capital utilization is indeed high. If the market experiences a short-term pullback, full position can help you last longer. But the problem is obvious—once a position blows up, the entire account is wiped out instantly, leaving no chance to recover. So full position is really only suitable for large-capital traders or short-term experts who can precisely time entries and exits quickly. Small investors should avoid it; the risk of liquidation is too high.

Incremental position is much more moderate. Each position’s profit and loss are calculated independently; if one blows up, it doesn’t affect the others. For example, if you have 1000 USDT, in full position mode, losing 500 on one position deducts directly from your 1000. But in incremental mode, you allocate 500 to two positions; if one blows up, the other still has 500. The risk is controllable, and you won’t be wiped out due to a single mistake. The downside is lower capital efficiency and weaker holding capacity, making it easier to be shaken out by short-term volatility. However, for conservative traders or those testing strategies, incremental position is safer.

After explaining position modes, let’s talk about take profit and stop loss. Many people fail because they don’t set these properly. Take profit means cashing out at a certain point to lock in gains; stop loss means accepting a loss and exiting to avoid liquidation. If not set well, the market will teach you a harsh lesson.

Another detail worth noting is the difference between the latest price and the mark price. The latest price is the real-time transaction price in the market, which can be highly volatile and suitable for short-term traders who react quickly. The mark price is a smoothed price calculated by the platform, which reduces the risk of liquidation due to price spikes and is more suitable for long-term holding. Use the latest price if you want quick entries and exits, but be careful of false triggers. Use the mark price for more stability, even if it might miss the optimal take profit point, as it reduces interference from short-term fluctuations.

In summary: full position is high risk and high reward, suitable for experienced traders but don’t be greedy. Incremental position is lower risk with steady gains, suitable for beginners but don’t expect to get rich overnight. Setting take profit and stop loss is the lifeline of trading; not doing so will teach you what a market crash feels like. Ultimately, controlling your position size and setting stop losses are key to surviving in this market.