Don't panic if you're stuck in a contract! 5 ideas to get out + a pitfall avoidance guide,

Key points first: Contracts carry high leverage risk, the following are just ideas for sharing and do not constitute operational advice! Beginners beware!)

Get Out Ideas - Practical Version (with Precautions)

1

Cut Loss Method

If you find the market moving against you/sudden bad news, don’t hold on! Act decisively and close positions to cut losses, even if it means a loss, protect your principal. Applicable in cases of trend reversal or sudden market crashes, greed will only snowball your losses.

2.

Average Down Method

If you see the market correcting/stabilizing at support levels, you can add to your position with a small amount to lower the average price. But! You must first confirm the validity of the support level (for example, by looking at candlestick patterns/moving averages). Each time you add to your position, do not exceed 1/3 of the original position, otherwise, you will end up trapped more and more.

3.

Hedging Protection Method

If your long position is stuck, open a short position, and if your short position is stuck, open a long position, using opposing positions to hedge against fluctuations. But the key is to calculate the hedging ratio (e.g., 1:1), and you have to be quick in and out; otherwise, you’ll end up losing on both ends.

4.

Contract Roll-Over Method

If the long-term trend hasn’t changed but is close to expiry, you can roll your position to a longer-term contract. Note that there are handling fees for rolling over, and if your trend judgment is wrong, the longer you drag it out, the more you lose; this is suitable for situations where you have high confidence in the overall direction.

5

Margin Top-Up Method

Quickly top up your margin before liquidation! But this trick is a “painkiller” not a “cure”; if the market continues to plummet, topping up more could still lead to total losses, use with caution!!

V Doubao's ramblings

The essence of contracts is a tool to magnify profits and losses, 90% of retail investors get stuck because of:

X No stop-loss set X Holding positions and adding without a plan X Believing in “just wait for a bounce to profit”

True experts understand: not getting stuck is the highest level of operation!

Beginners who want to trade contracts should first practice with 1% of their principal, understand leverage, liquidation lines, stop-loss and take-profit before increasing their investment! $BTC $ETH #加密市场回调 #山寨季何时到来？