The Mathematical Truth Behind the Leek Harvester
Let's talk about secrets that contract players dare not speak of.
Do you know why most people playing contracts end up losing badly?
Because that '100x leverage' button on the exchange homepage is not a wealth button, but a mathematical mine buried by the market makers!
Leverage does not equal the secret to getting rich
The exchange keeps boasting about '10U leveraging 1000U positions,' this trick is just like handing out free chips at the entrance of a casino. Last week, a friend went all in with a 30x leverage long position on BTC, and when the price dropped 1% in the middle of the night, it went straight to zero. Why? He never calculated the liquidation price = opening price × (1 - margin ÷ leverage).
For example: Opening a 10U long position on BTC with 100x leverage at a current price of 100,000U, if the price drops by just 0.1%, it can wipe him out completely.
Not knowing the liquidation price is like walking a tightrope with your eyes closed.
Liquidation Price = Opening Price × (1 + 100% ÷ Leverage)
500U Refugee Level: Don't touch above 20x! Each position opening ≤ 10%, the liquidation line must be set outside ±8%. Remember, market makers love you tender leeks who think 'let's gamble and turn a bicycle into a Range Rover.'
5000U Middle-Class Level: 5x leverage maximum, single position ≤ 30%. 3% trailing stop loss locked in, automatically protects your position during a midnight crash.
50,000U Big Player Level: 2x leverage as a base, can withstand a 50% drop. When they drop 50% to add margin, you’re on the rooftop after just a 5% drop.
And the market makers' liquidation trap three-piece set
Pin Artist: The buy orders are as thin as a layer of plastic wrap, large funds trade against each other to create false breakouts, MACD golden crosses and dead crosses tricking you back and forth.
Funding Rate Bloodsucking: Charges long positions 0.01% every 8 hours, can drain 30% of your principal in three months.
Liquidity Trap: The order book for altcoins is as thin as paper, a large player can crash the price with just a single throw.
Finally, the iron rule for contract survival
Before opening a position, solve three math problems: calculate the liquidation price, calculate the volatility tolerance, calculate the margin bullet.
Always keep 50% of your principal as a coffin fund.
Market makers treat K-lines as puppets, we must treat 'survival' as our highest priority.
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