Introduction to Trading Types Why Do Contracts Always Liquidate?

It's not bad luck; you simply don't understand the essence of trading! This article distills ten years of trading experience into low-risk principles that will completely overturn your understanding of contract trading — liquidation has never been the market's fault, but rather a time bomb you've set yourself.

Three Major Truths That Change Perception

Leverage ≠ Risk: Position Size is the Lifeline

Using 1% position with 100x leverage, the actual risk is only equivalent to 1% of a full spot position. A student used 20x leverage to trade ETH, investing only 2% of their capital each time, with three years of zero liquidations. Core formula: Real risk = Leverage factor × Position ratio.

Stop Loss ≠ Loss: The Ultimate Insurance for Your Account

During the 312 crash in 2024, a common trait of 78% of liquidated accounts: losses over 5% without setting stop losses. The iron rule for professional traders: a single loss should not exceed 2% of the capital, equivalent to setting a "circuit fuse" for the account.

Rolling Positions ≠ All-In: The Correct Way to Compound

Laddered Position Building Model: First position 10% for trial and error, increase position by 10% of profits. For a 50,000 capital, the first position is 5,000 (10x leverage), adding 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%.