What is the difference between opening a 1000U contract at 10x and a 2000U contract at 5x?

In a word: No matter how much margin you have, whether it's 1000, 2000, or 5000, if you go long at 10x and the price drops by 10%, you get liquidated; if you go short at 10x and the price rises by 10%, you get liquidated; if you go long at 5x and the price drops by 20%, you get liquidated; if you go short at 5x and the price rises by 20%, you get liquidated. #

The value is the same, but your liquidation price will be different. If you have 10,000 in capital, with 1000U at 10x, you have ten opportunities to open positions, while with 2000U at 5x, you only have five opportunities to open positions. The value of the returns is the same; which one will you choose?

In the cryptocurrency world, if you manage your positions well, you will outperform the vast majority of people.

Position management refers to a specific set of plans you set when you decide to trade cryptocurrencies, including when to open, increase, decrease, and close positions. Good position management is one of our important means of avoiding risk, minimizing losses, and maximizing profits! !

Position management includes capital management and risk control. It involves knowing when to increase positions, by how much, when to decrease positions, and by how much.

A complete trading process should be:

Market analysis, where you can use any technical analysis.

Position management: After entering the market, you need to consider what might happen next, what to do with profits, whether to increase positions, take profits, or continue holding. If there are losses, what to do: stop-loss, hold the position, or partially exit first; how much loss would lead you to exit completely.

Strictly execute trading: When your plan is clear, start implementing it without letting market fluctuations disrupt your thinking.

Conversely, the potential profit range is above the support line, and the upward trend in the market is not over, so theoretically, the potential profit is limitless. After entering the market and prices rise, we can hold the original position and wait for further increases, or gradually reduce and increase our positions based on market developments, and we will move our stop-loss accordingly.

When the price rises again to a new support or resistance level and then starts to pull back, the area below this support or resistance level is the area for reducing positions. At this point, we need to gradually liquidate all positions; your position management skills must balance risk and profit.

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