38462641505 Why did the contract get liquidated while so many people are still playing?

I see many bloggers saying that they opened 5x or 10x, and that the leverage is already quite small.

I really find it hard to understand. In fact, I want to tell you all, you are wrong.

Leverage is not calculated this way at all. The leverage ratio calculated by the platform has nothing to do with you; it is approximately the proportion that affects the platform's safety. You should calculate risk based on stop-loss or full principal.

With crypto's volatility being so high, you can open positions in increments with about 10-20% of your principal each time, with an overall position limit of about 2x (short) to 4x (long) of your principal. The overall stop-loss risk at any given moment should be within 20% of your principal (or within your psychological actual tolerance, which must also be less than 20%). It is recommended to average the risk over time at 10%, meaning there will be some periods of being in cash.

When doing contracts, you must clarify this statement.

You can choose not to believe in technology, not to believe in market makers, not to believe in K-lines and moving averages, not to believe in BTC, and think they are all scammers; you can also choose to believe in them. These conceptual issues will not prevent you from making money.

But there is one thing you must understand, which is [risk]: what is risk, how to manage risk, how to calculate risk, how to operate risk, how to withdraw risk... how to survive...

------- You cannot earn money beyond your cognitive range... Originally, if you invest in a coin, and its value doubles, you earn 100%; then if you do a contract with 3x, and you end up earning 300%, where does that extra money come from, do you know?

—— For contract trading, what you earn is actually money from risk management, which is the money that others lose and are liquidated, given to you. To get this money, firstly, you cannot get liquidated...

In fact, looking at the market from the perspective of [risk] is completely different from how ordinary people see the market. It's like looking at a mountain from the bottom versus having a panoramic view from the top; they are not the same thing at all. Just to give an example, those who buy coins can hold on and wait for the price to rise, endure losses, and emphasize patience... But in contract trading, if you hold on and wait, and endure losses, you probably won't survive the first three episodes.