The appeal of contract trading:
In the cryptocurrency world, contract trading has attracted much attention for its potential high returns. If you have a job with a monthly income of 10,000 yuan, and in contract trading, using a principal of 10,000 yuan and a leverage of 100 times, a slight fluctuation in the market may bring huge returns. If the market rises by 1%, your income will be comparable to a month's salary; if it rises by 10%, the income is equivalent to your annual income. If it rises by 100%, you can become a millionaire. Such temptations undoubtedly attract many people who seek to get rich quickly.
However, it is worth noting that not everyone has a high salary, and not everyone has the ability to earn 100,000 yuan in a year. In the cryptocurrency world, in addition to those senior players who have large amounts of money and use small positions, there are also many people with small amounts of funds who use high leverage to pursue rapid accumulation of wealth.
In extreme market conditions, price fluctuations may reach 1%-2% in one second, which does mean that if lucky, investors may earn a month's salary in just one second, or a year's salary in a few minutes. This is the charm of contracts.
But we must realize that this good luck is often short-lived. In contract trading, high returns hide high risks. While pursuing high returns, we should not ignore risk control and understanding of market rules.
