1000U opening 10 times vs 2000U opening 5 times, how big is the difference? The pitfalls that beginners are most likely to overlook!
Many family members think that doing contracts is the same as: "1000U opening 10 times" and "2000U opening 5 times", both nominal positions are 10,000U.
In fact, the difference is huge, and this is the fundamental reason why many people get liquidated!
I have been leading trades for many years and have seen too many fans and brothers get liquidated because of choosing the wrong leverage. Clearly, the direction is right, but in the end, they still get forcibly liquidated.
First: The risk space is completely different
With 1000U opening 10 times, as long as there is a reverse fluctuation of 10%, it may go to zero.
With 2000U opening 5 times, it takes a 20% drop to get liquidated. High leverage is indeed stimulating, but the margin for error is too low!!
Remember a saying from Xijie: the higher the leverage, the shorter the life!!
Second: Don't overlook invisible losses
Transaction fees, funding rates, and maintenance margins are all secretly harvesting you as an enemy.
Transaction fee of a thousandth, funding rate of one and a half percent, after a round, the margin shrinks by dozens of U.
In the end, calculating it down, with 10 times leverage, a 9% drop may result in liquidation, while 5 times can still bear a 19% drop.
Third: Experts rely on "position control" to make profits
I never go all in when leading trades! 30% for building positions, 20% for adding positions, 50% reserved!
When the market goes well, steadily making profits, and when wrong, can still retreat safely!
True experts do not bet on direction but control risk!
I have seen too many people go from 100,000 to 1,000,000, then drop back to zero!
Later, they came to understand: The market always has the next wave, but if the capital is gone, there will be no opportunity.
If you are still confused, not knowing how to control positions or how many times leverage to use, follow Xijie's steps! I will teach you the most practical low-risk doubling method!!
