When beginners face the choice of leverage multiples in exchanges, the red number of 100x is like a casino roulette, full of deadly temptation. A trader used 30x leverage to go long on BTC and got liquidated due to a 1% drop at midnight. This warns us: leverage is not a symbol of courage, but a mathematical question concerning profit and loss survival.

Leverage is essentially a double-edged sword. Taking the BTC price of $47,000 as an example, opening a long position with 100x leverage requires only $5 as margin, but if BTC drops by 1%, the $5 margin will be wiped out. The real leverage logic should be calculated using the formula Leverage Ratio = (Account Principal × Safety Margin) ÷ (Underlying Price × Volatility Coefficient), and one should avoid blindly pursuing high leverage.

Calculating the liquidation price is a must for contract players. Liquidation Price = Opening Price × [1 - (Margin × (1 - Maintenance Margin Rate)) ÷ (Number of Contracts × Contract Face Value)]. For example, with 100x leverage, 1 BTC contract, $10 margin, and a maintenance margin rate of 0.5%, BTC would need to drop from $47,000 to $42,300 (a 10% drop) in order to liquidate, so choosing leverage wisely can enhance safety.

Different capital amounts require different leverage strategies. For small amounts (up to $1,000), it is recommended to use 10 - 20x leverage, with a single position not exceeding 20% of the principal; for medium amounts ($1,000 - $10,000), use 5 - 10x leverage and set a 3% trailing stop-loss; for large amounts (greater than $10,000), primarily use 1 - 3x leverage, and use 20% of the capital daily for arbitrage hedging.

When the market plummets, smart traders will lower their leverage in advance. For instance, before BTC's 3% drop in 2024, someone reduced their leverage from 100x to 20x and set a tiered stop-loss. Leverage operations must strictly follow iron rules: do not open a position exceeding 20% of the principal; calculate the liquidation price before opening a position; if the price fluctuates over 5%, recalculate the margin.

Leverage is a tool, not a gambling device. Before opening high leverage next time, please calculate the liquidation price and remaining principal first. In the perpetual contract market, those who survive are always rational traders who are good at calculations and strictly adhere to the rules.$BTC $ETH #Strategy增持比特币 #币安Alpha上新