The Difference Between Low-Leverage and High-Leverage Contracts
First, the mindset is different
When trading a 5x contract, whether the price rises or falls, just a glance and I consider it a loss
When trading a 100x contract, oh no, it's dropped 2 points, should I run? If I run, I lose money; if I don’t run, I face liquidation. This dog platform is targeting me. In the end, I can only sigh, gains and losses are all fate, not entirely within human control.
Second, the judgment is different
For a 5x contract, you only need to make a rough judgment
For a 100x contract, a rough judgment is useless because there are short-term fluctuations that cannot be predicted; it’s a gamble, purely a gamble.
Third, the operations are different
With a 5x contract, you might not need to operate for several days, half a month, or even half a year; you could even uninstall the app directly.
For a 100x contract, you might need to operate dozens of times in a single day, and in the end, the money gets eaten up by fees.
With a 5x, you can take a long position; with a 100x, you dare not take a long position.
After trading contracts, you no longer want to play spot trading; after trading high leverage, you no longer want to trade low leverage.
So do not easily try contracts above 100x, as they are extremely dangerous. Don’t even do 20x; just stick with 5x. But once you start trading contracts, it’s inevitable that you will move towards higher leverage, until you finally face liquidation and reach zero. This is a very long process; it's not just a one-time liquidation, but a continuous series of liquidations, where you pay a lot of tuition fees. Many people, even after paying these fees, end up bankrupt, losing everything, and still gain nothing in the end.
In summary, everyone should pay attention to the leverage ratio when trading contracts.
Do not open 100x, so I opened 125x 😂😂😂$BTC