Nasan南山
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Today, let's briefly talk about perpetual contracts. Just as the name suggests, they have no fixed expiration date and are quite novel in today's digital asset derivatives trading. As long as there is no forced liquidation and you do not actively close your position, you can hold on indefinitely.
In actual operation, how much leverage is appropriate? I previously discussed this with friends in the industry; some are accustomed to using 50x leverage, while others often use 30x. Taking a popular digital asset as an example, 30x leverage requires 16U collateral, 50x requires 10U, and 100x only needs 5U.
In the same market conditions, I personally prefer 100x. Why? Because once you choose a leveraged contract, whether it is 1x or 100x, the risk is present. However, in comparable market conditions, the profit difference between 1x and 100x is too significant. Some say that 1x has lower risk, which is indeed true, but for a popular asset, the cost of one contract at 1x leverage could be as high as over 470 U. If there is no significant price fluctuation, the transaction fees alone can be burdensome, and even if you make a profit, it won't be much. Therefore, if you are going to engage in leveraged contracts, you need to fully leverage the advantages of leverage.
However, it is important to note that many people use small amounts of capital to engage in contracts beyond their risk tolerance. If the collateral is insufficient, they simply cannot withstand market fluctuations. When faced with price oscillations or significant rises and falls, it is easy to be forcibly liquidated. Even if the market turns favorable later, it will have nothing to do with you. Therefore, when engaging in perpetual contracts, if conditions permit, it is necessary to prepare more collateral; having an extra layer of protection is always a good thing.
Every investment carries risks. What we need to do is minimize risks as much as possible before pursuing profits. Holding onto a losing position is a major trading taboo; timely stop-loss is particularly crucial. Using a position-by-position model can better control risks; do not joke around with your own funds.
You can set a small daily goal for yourself; once achieved, take profits promptly, and trading will feel more relaxed. Friends who have been involved in this type of trading for a long time should be clear that if you have 5000U in capital, making 50-100U a day is not too difficult. Mastering some methods and techniques can further increase the success rate. Even considering market fluctuations and unexpected situations, if we average it out, in a month of 30 days, as long as you achieve your goal for 20 days, you can still make a profit in the end.
In actual operation, how much leverage is appropriate? I previously discussed this with friends in the industry; some are accustomed to using 50x leverage, while others often use 30x. Taking a popular digital asset as an example, 30x leverage requires 16U collateral, 50x requires 10U, and 100x only needs 5U.
In the same market conditions, I personally prefer 100x. Why? Because once you choose a leveraged contract, whether it is 1x or 100x, the risk is present. However, in comparable market conditions, the profit difference between 1x and 100x is too significant. Some say that 1x has lower risk, which is indeed true, but for a popular asset, the cost of one contract at 1x leverage could be as high as over 470 U. If there is no significant price fluctuation, the transaction fees alone can be burdensome, and even if you make a profit, it won't be much. Therefore, if you are going to engage in leveraged contracts, you need to fully leverage the advantages of leverage.
However, it is important to note that many people use small amounts of capital to engage in contracts beyond their risk tolerance. If the collateral is insufficient, they simply cannot withstand market fluctuations. When faced with price oscillations or significant rises and falls, it is easy to be forcibly liquidated. Even if the market turns favorable later, it will have nothing to do with you. Therefore, when engaging in perpetual contracts, if conditions permit, it is necessary to prepare more collateral; having an extra layer of protection is always a good thing.
Every investment carries risks. What we need to do is minimize risks as much as possible before pursuing profits. Holding onto a losing position is a major trading taboo; timely stop-loss is particularly crucial. Using a position-by-position model can better control risks; do not joke around with your own funds.
You can set a small daily goal for yourself; once achieved, take profits promptly, and trading will feel more relaxed. Friends who have been involved in this type of trading for a long time should be clear that if you have 5000U in capital, making 50-100U a day is not too difficult. Mastering some methods and techniques can further increase the success rate. Even considering market fluctuations and unexpected situations, if we average it out, in a month of 30 days, as long as you achieve your goal for 20 days, you can still make a profit in the end.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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