Fans who trade spot often ask me: With contracts so easy to get liquidated, why are there still so many people playing?
Because those who understand the game are calculating, while those who get liquidated are dreaming.
The key to contracts has never been the leverage ratio, but the ability to control risk.
First, don’t be fooled by apparent leverage.
The platform shows you are at 5x leverage, but if you have 10,000 USDT in your account and can only accept a maximum loss of 500 USDT, yet you open a position of 30,000 USDT, then you are actually using 60x leverage. Many people get liquidated here without realizing the true extent of their risk.
Second, true contract experts spend most of their time holding no positions.
They don’t trade every day, only taking action when they are confident. Because contracts are a zero-sum game, every profit you earn comes from someone else’s liquidated losses.
Third, whether you can stabilize your contracts depends on whether you can go against human nature.
If the direction is wrong, cut losses decisively; don’t let a single loss exceed 5%. If the direction is right, increase your position and let profits run for 2-3 times before exiting. This is the logic of 'small losses and big gains', and the core principle can be summed up in one sentence: strict execution.
Those who get liquidated mostly do not understand position sizing, do not set stop-losses, and rely on feeling to enter the market; those who can consistently profit rely not on luck, but on a clear set of discipline and a stable system.
So the conclusion is simple:
Contracts are not gambling; they are essentially a high-risk, high-discipline tool.
If used well, they accelerate profits; if used poorly, they become liquidating instruments.
So leverage should not be avoided, but used with caution.
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