The most exciting part of trading contracts is your judgment on whether the price of this coin will rise or fall in the future. You can choose an appropriate leverage multiplier to increase your returns. For example, leverage risk: this is easy to understand. If you open a position using 10x leverage and the price drops by 2%, your loss is magnified by 10 times, resulting in a 20% loss. Moreover, these trades do not fluctuate as little as stocks; a 1% or 2% rise or fall is quite random. It’s possible that a major player on the platform, in a good mood today, might sell off wildly, causing the price to plummet. Therefore, beginners must have a corresponding understanding of this leverage risk. However, beginners should not rush into using high multipliers; after all, the higher the multiplier, the greater the risk. A slight fluctuation could blow your position. It is recommended that beginners use leverage below 10x when trading contracts.
