$BTC $ETH A fan asked: Should I use contracts or spot trading?
In fact, there is no inherent superiority between spot and contracts; the key lies in the trading logic. Large funds choose spot for stability, while small funds may consider contracts for quick accumulation.
The risk does not lie in the tools themselves, but in the methods of use. Heavy positions with high leverage and holding positions without stop-loss are the root causes of liquidation. Reasonable risk control methods:
1. Fixed stop-loss of 1% per position
2. Maintain a 4:1 profit-loss ratio
3. A win rate of 20% is sufficient for profit
4. Establish a complete trading system (trend judgment, entry and exit rules, capital management, etc.)
The core is discipline: replace human nature with rules to maintain behavioral consistency. As long as the system is strictly followed, contract risks can be completely controlled. The amount of capital determines the choice, and the level of understanding determines the outcome.
