Can perpetual contracts really make money?
Can you make money? Of course you can! But you have to understand first that perpetual contracts are actually no different from gambling - it's just a high-risk, high-return game. If you play well, it's really fun to make money; but if you don't play well, the feeling of liquidation is more painful than falling into a pit.
Want to know if contracts can make money? Come, let's first analyze why liquidation has become the "classic ending" discussed by so many people.
1. Leverage is a "double-edged sword"
First of all, the most attractive thing about perpetual contracts is leverage. The use of leverage can make your funds multiply. For example, if you use 10x leverage, the principal can be magnified 10 times, and you can earn more; but the speed of loss is also doubled, and the loss is also magnified. It's like dancing on the edge of a knife. If you dance well, you are the king of dance, and if you dance badly, you are the unlucky person who falls.
Theophilus once said: "The leverage of perpetual contracts is like a dancer holding a knife. If you jump too high, you will fall too fast." Indeed, many investors in the contract market think that they can operate more boldly when they see the profit magnification. The result is often "too much leverage and you get stabbed bloody."
Interested friends in the business press 1 to get on the bus.
