How much leverage should you use for perpetual contracts? After ten years of stepping over countless corpses, here is my answer.

Many people ask me every day: how much leverage should be used for perpetual contracts?

To be honest, I've heard this question for ten years, and the ones who ask the most are always those who have been cut by leverage.

$TRADOOR

I just want to start with a sentence:

$HANA

Leverage is not a money-making button; it’s a meat grinder, depending on how you use it.

$MON

01 You need to first see the 'sweetness' of perpetual contracts.

Perpetual contracts have no expiry date, which looks very free:

You can enter and exit at any time, and double your position whenever you want.

But you must remember— the greater the freedom, the harsher the cost.

A couple of days ago, a brother said he likes to use 30~50 times leverage; I asked him why he doesn’t use 100.

He said it’s dangerous.

I laughed:

As long as you use leverage, you are already on the edge of a cliff; the only difference is how fast you fall.

02 Leverage multiplier is not the key

1 times leverage is the most stable, but you can hardly earn anything in a small market.

100 times leverage is the most extreme, but disciplined individuals use it more safely than 5 times leverage.

So the question has never been 'how much leverage to use,' but rather—

Can you control yourself?

03 What really causes you to get liquidated is not leverage, but mismatch

Many people want to leverage a few hundred U to control a position of several thousand U.

Two opposite K lines, and you are directly cleared out.

The most frustrating thing is: you saw the right direction, but you are no longer at the table.

Remember this:

The multiplier is arbitrary, but your margin must withstand normal fluctuations.

07 Real experts make money through risk control, not through 'betting all on luck'

The three iron rules of perpetual contracts:

Always use isolated margin, do not use full margin.

Always set stop-loss, do not hold losing positions.

Always accumulate small profits, do not go all-in to zero.

Many people gamble once to get rich, but end up treading water;

Real old hands steadily take dozens of U every day, which amounts to a 20%-40% return a month.

Making a fortune is incidental; stability is true strength.

08 Leverage is not the devil; human greed is

Leverage only amplifies your essence:

If you have good discipline, it helps you make money quickly;

If your mindset is unstable, it leads you to lose quickly.

The vast majority of liquidations are not due to extreme market conditions,

But because people are too greedy, too stubborn, and unwilling to admit defeat.

Remember this last sentence clearly:

The real danger is not 100 times leverage; it’s your lack of discipline.

The real safety is not low leverage, but your ability to stop loss.

Perpetual contracts are not for betting on 'what if',

But for capturing 'high probability'.

Contracts do not harm people; greed is what is deadly.