Fans often ask Brother Sheng: What percentage of the contract should I open with 10X/20X/30X leverage?

Below, Brother Sheng will explain how to control leverage risk! {You must save this}

In the crypto world, in cryptocurrency contract trading, for example, using 10x leverage, the opening position ratio directly affects the liquidation risk and capital utilization rate.

Below are risk assessments and suggestions for different position ratios:

2. Specific suggestions (using 10x leverage as an example)

(1) Conservative strategy (recommended for beginners)

  • Opening Position Ratio: 10%~20%

    • For example: $10,000 principal, open $1,000~$2,000 position

    • Risk Resistance Ability: Can withstand 5%~10% reverse fluctuations

    • Advantage: Leaves room for additional positions, avoiding short-term liquidation

(2) Routine swing trading

  • Opening Position Ratio: 20%~30%

    • Must set strict stop-loss (suggested ≤3% principal loss)

    • Suitable when the trend is clear (e.g., chasing up after breaking key resistance)

(3) High-risk short-term (for experienced traders only)

  • Opening Position Ratio: 30%~50%

    • Must monitor the market and plan stop-loss and take-profit in advance

    • In extreme market conditions, liquidation may happen instantly (e.g., spike events)

(4) Absolutely prohibited behaviors

  • ❌ Full position with 10x leverage (1% reverse will lead to liquidation)

  • ❌ High leverage on multiple cryptocurrencies simultaneously (risk accumulation)

4. Practical Risk Control Techniques

  1. Dynamic stop-loss: Move the stop-loss up by 2% for every 5% price increase (lock in profit)

  2. Margin layering: Reserve 30% margin to cope with extreme fluctuations

  3. Avoid high volatility periods: such as major news releases, peak clearing times at exchanges

5. Real data references

  • In 2023, the number of days Bitcoin's single-day volatility exceeded 10%: 47 days

  • The number of days where altcoins (e.g., SOL, ADA) had single-day volatility >20%: 89 days

  • Conclusion: When opening a position >30% with 10x leverage, the annual liquidation probability exceeds 70%

Brother Sheng suggests: The premise for long-term survival in the market is to control leverage ≤5 times + opening position ≤20%. High leverage is a 'tool for accelerated death', not a 'wealth code'.


#美国加征关税

#冲币新时代

🤫 Exclusive benefits, follow first to get! Brother Sheng's 10 years of practical experience in the crypto world will unlock practical skills and more hidden practical content~