I found that many people who do contracts do not understand the position size and contract multiples
Let me popularize the basic knowledge.
Some people say that they dare not open 100 times when doing contracts, it is easy to blow up the position; some people see others screenshot 50 times or even 100 times, and they will say that they must use a low multiple, otherwise it is easy to blow up the position.
In fact, these statements are not accurate, because it is meaningless to just look at the multiples. For example, I have 100u, you also have 100u, I open 1u 100 times, you open 100u 5 times, although I am 100 times, but I am much safer than you, why is this?
This is related to the position size. In fact, whether it is safe or not depends on the size of your position, and the position size = the opening funds used * contract multiples. Seeing this formula, everyone should understand that although I have a high contract multiple in the above example, my position is actually smaller.
So it is meaningless to judge the danger by only looking at the contract multiples opened by a person without knowing the funds he opened the order.
Some people like high-multiple contracts, while others like low-multiple contracts. It's just a personal habit. It depends on the size of the position.
