Contract rules in the currency circle

1. When large funds operate with large amounts of funds, stability and risk control are the core.

(I) Low leverage operation leverage is generally 2-3 times, not more than 5 times. It is suitable for medium and long-term investment in altcoins, adopts a position-by-position mode, strictly sets stop losses, and reduces volatility risks.

(II) Medium leverage operation leverage is 5-10 times, mainly mainstream coins, suitable for short and medium-term. Because the impact of volatility is magnified, it is necessary to clearly set stop losses and set stop loss positions according to the market and one's own situation.

(III) High leverage operation leverage is 100 times or even higher, used for high-risk speculation. Although it can magnify returns, the risk is extremely high, and investors' risk tolerance and market judgment ability are extremely high.

2. Small and medium-sized funds operate with small funds, and risk awareness and strategy execution capabilities are very important.

(I) High leverage game leverage is more than 100 times, position-by-position mode, small single margin, and mainly speculation. Most of them are novices, lack risk control awareness, easy to blow up positions, and frequent losses.

(II) Medium-to-high leverage Try leverage of 20-100 times. Investors are aware of the leverage risk, but their tolerance is insufficient. They hold a "give it a try" mentality, fail to fully assess the risk, are prone to losses, and are difficult to make stable profits.

(III) "Loss-based quantitative" strategy leverage mainly affects the margin utilization rate. The opening volume is calculated based on the single tolerable loss, and the position is reasonably controlled to avoid a single loss affecting the overall funds and achieve long-term stable returns.

III. Healthy contract trading methods recommend low leverage (2-3 times) + clear stop loss (loss-based quantitative). Low leverage can reduce the impact of market fluctuations, and combined with "loss-based quantitative" to strictly set stop losses. When trading altcoins, it is even more important to set stop losses carefully to prevent major losses caused by drastic price fluctuations.

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