Introduction to Trading Types Why Do Contracts Always Liquidate?

It’s not bad luck, it’s that you fundamentally don’t understand the essence of trading! This article, condensing ten years of trading experience into low-risk principles, will completely overturn your perception of contract trading — liquidation has never been the market's fault, but rather a time bomb you planted yourself.

Three Major Truths That Disrupt Perception

Leverage ≠ Risk: Position Size is the Lifeline

Using 1% position size with 100x leverage, the actual risk is only equivalent to 1% of a fully invested spot position. A certain student operated ETH with 20x leverage, investing only 2% of the capital each time, with three years and no liquidations. Core formula: Real risk = Leverage multiplier × Position size ratio.

Stop-Loss ≠ Loss: The Ultimate Insurance for Accounts

In the 312 crash of 2024, 78% of liquidated accounts had a common feature: losses exceeded 5% but still did not set stop-loss. Professional traders' iron rule: single-loss should not exceed 2% of capital, equivalent to setting a "circuit fuse" for the account.

Rolling Positions ≠ All In: The Correct Way to Compound

Step-by-step Position Building Model: First position 10% for trial and error, increase position by 10% of profits. With a capital of 50,000, the first position is 5,000 (10x leverage), increasing by 500 for every 10% profit. When BTC rises from 75,000 to 82,500, the total position only increases by 10%, but the safety margin increases by 30%.