Open contracts with isolated margin, don't go all in! Learn this trick to stay away from liquidation!

In the cryptocurrency futures trading world, one basic rule is:

Never go all in; using isolated margin is the way to go!

Why?

Isolated margin allows you to flexibly adjust your margin and liquidation price, giving you a bit more control over your risk.

Think about it, with the same 10x leverage, the liquidation price is clearer with isolated margin, and you can adjust your positions in batches without making a mistake that you'll regret forever.

Here's a simple example:

If a certain coin's current price is $100,

with 10x leverage, the liquidation price can fluctuate around $100 with a $10 range;

with 20x leverage, the liquidation price shrinks to a $5 range;

with 2x leverage, the liquidation price is $50 up or down, meaning you have more room and are less likely to be liquidated.

In fact, spot trading is like 1x leverage; if it drops to zero, you lose $100, which is equivalent to a 1x liquidation in futures.

The leverage multiplier isn't fixed; the important thing is to adjust flexibly and follow the market trends. Below ⬇️188 up 🚗

If you are doing intraday short-term trading, you can use relatively higher leverage, calculated based on the recent highest and lowest price differences.

If market volatility is several thousand points, and you set your leverage reasonably, the liquidation price will be far from you safely.

For medium to long-term trades, with longer time frames, market volatility is larger and more uncertain, so leverage should be lower to give yourself more buffer space.

Different coins have different situations, and leverage varies accordingly.

Popular coins can fluctuate 30% within 24 hours.

If you're still using 20x leverage, isn't liquidation just a matter of time?

Many beginners don't understand this detail; they just blindly use high leverage, which can actually lead to significant losses.

So don't just focus on the indicators; the market is ever-changing.

Leverage should follow the market and time cycles.

Understanding how to calculate the liquidation price and adjust positions is key.

If you also want to understand how to flexibly use the leverage multiplier in futures, #山寨季何时到来？ #加密市场回调