Why are there still people trading contracts despite liquidation? The truth lies here!

Leverage is not the key; the real core is risk control. Smart people rely on these 3 points when trading contracts:

1. The real leverage algorithm

It's not about the 5x or 10x given by the platform, but calculating your actual risk.

Actual leverage = Position value / Maximum allowable loss.

With a $10,000 account, can you afford a loss of $500 while opening a $30,000 position?

In reality, that's 60 times leverage! Not the 5 times you think.

2. The essence of contracts is risk trading.

Of the 300% profit you earn, 200% comes from someone else's liquidation.

Professional players spend 70% of their time in cash, waiting for the best opportunity to strike.

3. Winning requires going against human nature.

Stay calm when others panic.

Be cautious when others are greedy.

Strict stop-loss (single loss of 5%).

Let profits run (profit stop-loss at 2 times).

Contracts are not gambling; they are a game of professional risk management. Those who get liquidated are dreaming, while those who make money are calculating.