How many times should the leverage be opened in perpetual contracts in the cryptocurrency market to be reasonable? What is a perpetual contract? As the name suggests, it is a contract with a perpetual duration. In the current digital currency derivatives trading market, perpetual contracts are considered a relatively new type of contract. The meaning of a perpetual contract is that, under the premise of not being liquidated, if you do not actively close the position, you can hold this contract indefinitely. So how much leverage is reasonable to open when trading? Let's explain this in detail below.
For example, if you open 50x leverage or 30x leverage. Taking Ethereum as an example, 30x leverage requires 88 U, 50x leverage requires 53 U, and 100x requires 26.5 U. Under the same market conditions, my personal suggestion is to only open 100x leverage. Why? Because once you open leverage in a contract, whether it's 1x or 100x, you are exposed to leverage risk. Under the same market conditions, the profits generated by 1x leverage and 100x leverage are vastly different. Some may say that 1x leverage has less risk, which is true. Taking Ethereum as an example, if it has 1x leverage, currently one contract requires over 2650 U. Without a significant price increase, you will definitely incur losses due to transaction fees, and even if there is a profit without a significant price increase, it won’t be much. What I want to express is that since you have chosen to trade leveraged contracts, you should make good use of this leverage and only open 100x leverage.
What does it often look like? You take thin funds to trade contracts that do not match your current capital. With a small margin, it cannot support the current market. You might get liquidated in a slightly volatile market, and when the profitable market comes later, it has nothing to do with you. At this point, the contracts we hold become invalid. Therefore, when trading perpetual contracts, under permissible conditions, we should appropriately prepare more margin, just in case. No matter what investment you make, there are risks involved, and what we need to do is find ways to reduce those risks and then look at the benefits. Holding on to a losing position is a major taboo in trading contracts; if the direction is wrong, it’s better to cut losses in time.
Timely loss-cutting, combined with a position-by-position strategy to reduce risks, do not joke with your own capital. Set a daily goal for yourself; once you achieve the goal, secure your profits. Trading contracts will become very simple. Cryptocurrency friends who have been in touch with contracts for a long time know that if you have 5000 U as your capital, making a profit of 50-100 U daily is very simple, and with some methods, it becomes even simpler. If you make a profit of 50-100 U a day, how much is that in a month? 1500--3000 U! Of course, in actual operations, you may encounter large market fluctuations or various unexpected events. To compromise, let's say in a month of 30 days, if you complete your daily target for 20 days, you are still making a profit. If you have any questions, feel free to message me, and I'll reply as soon as I can.#我的COS交易 #Circle扩大IPO规模 #美国加征关税 #Strategy增持比特币
