Perpetual Contract Practical Guide: Leverage, Risk Control, and Profit Rhythm!!!
Today we discuss perpetual contracts — derivative tools without a fixed expiration date; as long as you don’t get liquidated or manually close your position, you can hold it indefinitely. In digital asset trading, its flexibility and leverage attributes make many people both love and 'fear' it.
How to choose leverage multiples?
In discussions within the community, some are accustomed to 30x or 50x, but I prefer 100x leverage (taking popular assets as an example: 30x requires 16U margin, 50x requires 10U, while 100x only requires 5U).
The core logic is: since you choose leveraged contracts, it’s essentially using risk to exchange for high returns — 1x leverage may seem 'stable', but the cost of 1 contract for popular assets can reach as high as 470U+, and when the market fluctuates little, the fees can eat away profits; whereas high leverage can amplify return efficiency and maximize the tool's properties.
But there’s a prerequisite: don’t play with contracts beyond your capacity!
Many people use 'small money to bet on big fluctuations', and when the margin is insufficient, a slight market shake can lead to liquidation. Once the market reverses, the profits have nothing to do with you. It’s advisable to have sufficient margin (at least covering 3 - 5 extreme fluctuations), use a positional model to control risk, and don’t gamble your principal on luck.
Trading discipline is more crucial
Don’t stubbornly hold onto positions! Timely stop-loss is a lifeline; combined with a positional model, strictly control each trade loss to ≤ 5% of the principal;
Set small goals: for example, with a 5000U principal, aim to earn 50 - 100U daily for a profit-taking. If achieved in just 20 days, the monthly returns can be quite substantial. Over the long run, maintaining a win rate of 60%+ will naturally lead to profits.
Perpetual contracts are a 'double-edged sword'; if used correctly, they are tools to amplify returns, but if misused, they become an 'accelerator' for liquidation. The key is to control leverage risk, strictly adhere to stop-loss discipline, and maintain a profit rhythm. Market opportunities are often present, so don’t let a single impulse wipe out your principal and confidence.
