Why I recommend small capital beginners to use leverage instead of contracts

Both can be used for long and short positions, but most people choose contracts, while I believe leverage should be chosen.

There are two advantages:

1: Most small capital beginners often cannot distinguish between position control in contracts and the size of leverage. Full-position leverage enforces 5x leverage without answering questions, greatly controlling risk.

2: Leverage is based on spot borrowing for trading, and using fdusd can achieve zero fees (for limit orders) with relatively low trading costs. Additionally, leverage can be held for a long time without being constrained by the automatic position reduction mechanism, making it very suitable for long-term holding.

Of course, there are also disadvantages: low leverage means funds cannot be used efficiently, with most funds used as margin.

At the same time, it cannot open both long and short positions, and there is no K-line modification, which adds some difficulty to operations.