Author: Coin Sea Beacon · Eastern Saint


In the crypto space, many young people immediately think that '125 times leverage' is the most dangerous play. In fact, it's exactly the opposite:


The real risk is not 125 times, but the 'medium leverage' of 50 times.


Why? Today, the leader of the main currency will clarify this unpopular yet crucial knowledge point for young people.



【One】The higher the leverage, the fewer positions opened?


Many young people think that the higher the leverage, the more contracts they can open. Theoretically, this is true, but in practice, platforms will limit your maximum position under high leverage to control risk.


For example, if there are 100 USDT in the account:



  • With 125 times leverage, theoretically, you can open 12500 U, but the platform may only allow you to open a position of 50000 U;


  • With 50 times leverage, you can open 5000 U, and the platform allows you to open even more, even hundreds of thousands U;


  • With 10 times leverage, you can only open 1000 U, but it's very stable.


So you will find that contracts opened with 125 times are actually fewer than those with 100 times or 50 times.



【Two】The most easily liquidated is actually medium leverage


Why? Because medium leverage doesn't have strict limits and allows you to fully utilize your margin.


Take 50 times leverage as an example:



  • Margin can be fully invested;


  • The position is large;


  • A slight fluctuation can trigger the liquidation line.


On the contrary, 125 times, although the leverage is high and the liquidation line is close, the position is not large, so the loss is limited.



【Three】Full position + Medium leverage = The deadliest combination


Many young people like this combination:



  • Leverage can't be too low; afraid of missing the market;


  • But they don't dare to go for 125 times, thinking it's too scary;


  • In the end, they chose a 'seemingly moderate' 50 times...


The result is the configuration with the highest liquidation rate.



【Four】In summary


High leverage doesn't necessarily mean high risk; medium leverage is the real 'liquidation black hole.'


Young people should remember that controlling positions, setting stop losses, and being rational are much more important than choosing how many times the leverage.



Coin Sea Beacon · Eastern Saint production

A KOL that only talks about practical content and cuts through the fog.

If you find it useful, like it and share it with your brothers who are still using 50 times leverage.