How to scientifically open contract leverage? Last night, a friend asked me if 50 times is reasonable, today I want to share some real talk
The essence of perpetual contracts can be summed up in one sentence: as long as you don't get liquidated, you can hold forever, unlike futures that must be settled on time. That's the most ruthless part of it
Here comes the key point! How much leverage should you actually use?
Some say 10 times is safe, while others show off 100 times operations. My view is very straightforward: either don't play, or go for 100 times
The logic is simple:
With 1x leverage, you need to stake over $400 for BTC, while 100x only requires $4
In the same market fluctuations, the low leverage profits aren't even enough to cover transaction fees
The dumbest move is to have a small principal but open high leverage, not even having enough margin, a single spike can wipe you out
Those who really know what they are doing understand three iron rules:
The margin must be sufficient (at least able to withstand three spikes)
Set your stop-loss line more decisively than a hairline
Take profits in batches after hitting 5%, don't wait for a pullback
Strategy for making $50-100 a day with a $5000 principal:
Only open isolated positions
Single stop-loss should not exceed 2% of the principal
Take half profits after hitting 3%
Remember:
Technical analysis is not as important as position management
The fantasy of getting rich quickly is not as good as earning 1% consistently every day
Those big players who have survived for three years treat contracts like an ATM, not a casino
