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

In a nutshell: Regardless of your margin, whether it's a thousand, two thousand, or five thousand, a 10x long position will get liquidated if the price drops by 10%, and a 10x short position will get liquidated if the price rises by 10%; a 5x long position will get liquidated if the price drops by 20%, and a 5x short position will get liquidated if the price rises by 20%.

🧐 Their value is the same, but the liquidation price will be different. If you have a principal of $10,000, you can open ten positions with $1000 at 10x, while with $2000 at 5x, you can only open five positions. The value and returns are the same; which would you choose?

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

‼️ Position management refers to a specific plan you set for opening, increasing, decreasing, and closing positions when you decide to trade cryptocurrencies. Good position management is one of the important means for us to avoid risks, enabling us to minimize losses and maximize profits!!

‼️ How should positions be managed? Is there a standard? Many traders fail, and one of the key reasons is that they treat market analysis as everything in trading, as if simply analyzing the market can determine victory or defeat. In fact, market analysis is just the most basic work; what truly determines success or failure is the work that comes after market analysis, which is the issues you consider after entering the market.

Position management includes capital management and risk control. More importantly, it involves when to increase positions, how much to increase, where to decrease positions, and how much to decrease.

🔥 To summarize: First, we need to find a support and resistance line at the cost price. When the price rises far from the cost line, we gradually increase our positions, and the increase must be incremental. When the price drops and gradually moves away from the cost line, we gradually decrease our positions, and the decrease must also be incremental. Your position management skills must balance risk and return.