Everyone, some people always ask 'Can contracts be traded?' 'How to look at points'... Today, Old Chen will thoroughly explain the underlying logic of Binance contracts. Beginners, don't act impulsively; understand these points before deciding—

First, the essence of contracts: Speculating on price movements with leverage; profits and risks are magnified by the same multiple.

Simply put:

✅ If you guess Bitcoin will rise, buy a 'long position'; if it rises, you profit; if it drops, you lose.

✅ If you guess Bitcoin will drop, buy a 'short position'; if it drops, you profit; if it rises, you lose.

The key is leverage: 10x leverage = 10 times profit, also 10 times loss! Beginners are advised to start with 1-5x, don't rush into 125x (there are too many bloody lessons).

Second, must understand 4 'points'; if you don't understand, you will definitely lose.

1. Opening point.

The price at which you place your order. For example, buying long at $30,000 means $30,000 is the opening price; if the price goes higher than this, you profit; if lower, you lose.

2. Closing point.

The price at which you sell. If you open long at $30,000 and sell at $32,000, then $32,000 is the closing point, making a profit of $2,000 per coin (multiplied by leverage and quantity).

3. Take profit/stop loss points (a life-saving charm for beginners!).

• Take profit: Set a target price in advance; when it reaches that price, it sells automatically (for example, if you open long at $30,000, set a take profit at $32,000, just wait to collect money).

• Stop loss: Set a bottom price in advance; when it reaches that price, it sells automatically (for example, if you open long at $30,000, set a stop loss at $28,000, so you won't lose more than $2,000 and avoid liquidation).

These two must be set! Don't trust yourself to 'watch the market'; the market fluctuates too quickly for you to react.

4. Liquidation point.

The scariest point! When losses approach the margin requirement, the system will force close your position (you lose all your money). The higher the leverage, the closer this point is to your opening point—at 100x leverage, a 1% price movement could lead to liquidation; beginners should definitely avoid this!

Three steps for beginners to get started, to pay less tuition.

1. First, practice with spot trading: If you're not familiar with buying and selling coins, don't touch contracts (you will really cry).

2. Small funds for trial and error: Use $50-$100 to play, feel the power of 'point fluctuations + leverage'. For example, with $100 at 5x leverage, a 2% drop means a loss of $10—an intuitive experience of risk.

3. Stick to the rules: The Binance contract page has a 'beginner's classroom'; first understand the difference between fees, perpetual/settlement contracts (perpetual can be held indefinitely; settlement has a maturity date).

Lastly, a reality check.

Contracts are not a 'shortcut to wealth', they are a 'money-losing accelerator'! 9 out of 10 beginners lose money; the one who profits has also paid a lot of tuition fees to find the way.

Really want to try? Remember: small funds, low leverage, must set stop loss. Don't increase your position if you lose, and don't be greedy if you profit.

If you find this useful, save the image, and next time someone asks, just send it to them! If there's anything else you don't understand, kick me in the comments~ (Don't ask 'when to buy'; I'm not a god, I only teach the rules, not coin recommendations).