$USDC Trading Type Introduction: Why Do Contracts Always Liquidate?

It's not bad luck; it's that you fundamentally don’t understand the essence of trading! This article, embodying ten years of trading experience, presents low-risk principles that will completely overturn your understanding of contract trading—liquidation is never the market's fault, but rather a time bomb you set for yourself.

Three Major Truths That Disrupt Understanding

Leverage ≠ Risk: Position Size is the Lifeline

Using 1% of your position under 100x leverage results in actual risk equivalent to 1% of a full spot position. A certain student operated ETH with 20x leverage, only investing 2% of their capital each time, with three years of no liquidation records. Core formula: Real risk = Leverage multiplier × Position ratio.

Stop-Loss ≠ Loss: The Ultimate Insurance for Your Account

During the 312 crash in 2024, 78% of liquidated accounts shared a common characteristic: they did not set a stop-loss even when losses exceeded 5%. Professional traders' iron rule: a single loss must not exceed 2% of the capital, which is equivalent to setting a "circuit fuse" for the account.

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

Step-by-step Position Building Model: Start with a 10% trial position, then add 10% of the profit to increase the position. With a capital of 50,000, the initial position is 5,000 yuan (10x leverage), and every time there is a 10% profit, an additional 500 yuan is added to the position. When BTC rises from 75,000 to 82,500, the total position only expands by 10%, but the safety margin increases by 30%.