Jiang Zhuoer Suggests Using Isolated Margin for High-Leverage Trading

On August 22, Jiang Zhuoer, the founder of the Liebit mining pool, pointed out in a post that around 13:10 Beijing time, a small flash crash occurred across the market, with BTC, ETH, and various altcoins experiencing significant price spikes. Non-crypto assets like crude oil also saw severe fluctuations. He advised against using a unified account to hold large amounts of high-leverage altcoin long positions simultaneously, as under a cross-margin model, if one cryptocurrency crashes by 50%, it could lead to insufficient margin in the account, triggering liquidation of other assets. Jiang Zhuoer recommended adopting an isolated margin model for high-leverage altcoin trading, which would isolate positions from each other to avoid the extreme market conditions of a single cryptocurrency affecting the entire account. Although isolated margin trading is relatively cumbersome, it can reduce the risk of the entire account's assets being wiped out in extreme market conditions.

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