Contract Trading: A Leveraged Directional Bet
Imagine you are not buying or selling physical assets, but betting on the future direction of asset prices. Perpetual contracts, as a mainstream choice, give you continuous exposure without delivery deadlines, as long as the account safety cushion remains, you can hold for the long term.
The Art of Margin Leverage
Your initial investment (margin) is not the full asset price, but the result of its value divided by the leverage multiple:
Margin = Contract Nominal Value / Leverage Ratio
Example: If the price of Bitcoin is 300,000 RMB, using 10x leverage requires locking in 30,000 RMB margin; if increased to 50x, only 6,000 RMB is needed to leverage the same position.
Core Warning: Leverage is a double-edged sword! It can amplify profits exponentially but can also instantly consume your capital. For novices, it is strongly recommended to keep leverage strictly within 5 times - survival is the key to the future.
Position Management Mode: Your Risk Moat
Incremental Position Mode (Recommended Starting Point):
Each trade independently allocates margin, profits and losses are self-borne.
If a single strategy fails, the loss is strictly limited to that margin, core assets remain intact.
Applicable Scenarios: Strategy Trials, High Volatility Tokens (like Altcoins) Exploration, Simulation of Aggressive Leverage Tactics.
All-in Mode (Pro's Forbidden Zone):
Total account assets serve as a unified guarantee pool for all positions.
A sharp drawdown in a single position may trigger a global liquidation, causing years of accumulation to vanish in an instant!
Only recommended for: Well-funded, experienced players with extreme restraint in leverage use.
Survival Iron Law: Beginners Must Build Three Wind Control Great Walls
Leverage Red Line:
Mainstream Coins (BTC/ETH): ≤ 5 times
Altcoins: ≤ 3 times (Their prices fluctuate wildly, akin to walking a tightrope)
Margin Redundancy:
At least 50% of total account funds must be reserved as strategic reserves, never invest in the battlefield. (Example: Principal 100,000, total margin for active positions ≤ 50,000)
Stop Loss - Your Lifeline:
At the moment of opening a position, set the 'automatic escape valve': Stop Loss Price = Opening Price × (1 - Maximum Acceptable Loss Rate)
Example: Long 30,000 RMB, willing to bear a 10% loss → Market price touches 27,000 RMB, the system automatically liquidates the position.
Hao's Survival Philosophy in the Crypto World
Only Use Spare Money for Speculation: Funds that affect living expenses should stay away from the contract battlefield. Investment should be a bonus, not a desperate need.
Incremental Position Building: As a novice, going all-in is like climbing a cliff without protective gear, equivalent to self-destruction.
Restrained Leverage + Strict Stop Loss = Long-term Path: The market is unpredictable, always maintain a sense of awe. Low leverage is armor, stop loss is a shield; together they form the foundation for your survival in the crypto jungle.
Opportunities and risks coexist in the crypto world; stay vigilant and timing is key. Follow Hao to avoid detours on your novice journey!!!