Do you think contracts are just gambling?

Many friends often use 50x, 100x,

even 125x; money just goes in, and in one night they get liquidated!

There are two types of people who use high leverage:

First: those who like to bet big with a small amount, who enjoy going all in, truly gambling!

Second: there are also beginners who don’t know how to operate, plan their positions, and end up finishing before they even start!

Managing positions in contracts is very important to maximize capital efficiency,

and also to avoid personal risks.

How to manage positions scientifically in contracts?

Flexible use of funds: for example, if you want to open a position of 10,000U, you can use 1,000U with 10x leverage, or 500U with 20x leverage.

Stop loss at 1%-3%,

using 10% of funds to seek 100% returns, while keeping losses under control.

If you use 10,000 with 10x or 20x leverage...

a single market wave can take you out, with no margin for error, no principal for trial and error; it’s easy to lose everything and distort your mindset!

Using high leverage to borrow funds multiple times your principal for speculative behavior, liquidation is common, and profit is rare. If you want to use contracts, you must first understand the basics, such as leverage multiples, funding rates; if you know nothing and get liquidated, you can’t blame the tool for harming you.

So it’s essential to plan your positions reasonably!

If you like contracts, enjoy studying charts, and researching techniques, click on my avatar. I share years of experience and tips in the crypto circle for free. I'm waiting for you in the circle, always online, welcome to discuss and improve together.