How far back should wire insulation be stripped when using terminal clips?

When using terminal clips, the wire insulation should be stripped just enough to fill the barrel of the terminal. This practice ensures a proper electrical connection without excess wire being exposed, which could lead to short circuits or unintended contact with other conductive surfaces.

Stripping the wire too far, as in fully stripping to the wire end, can create a risk of shorts and makes the installation less secure. Stripping a significant portion of the wire length is unnecessary and could lead to complications during installation and operation. Stripping one inch from the terminal end is excessive in most cases and can also expose too much wire, predisposing the setup to electrical hazards. The goal is to leave sufficient insulation on the wire leading to a secure connection while minimizing risks associated with exposed wire.