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, which condenses ten years of trading experience into low-risk principles, will completely overturn your understanding of contract trading — liquidation is never the fault of the market, but rather a time bomb you planted yourself.

Three Major Truths that Challenge Your Understanding

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 leveraged spot position. A student operated ETH with 20x leverage, investing only 2% of the capital each time, maintaining a three-year record of no liquidations. Core Formula: Real Risk = Leverage Multiple × Position Ratio.

Stop Loss ≠ Loss: The Ultimate Insurance for Your Account

During the 312 crash in 2024, a common feature among 78% of liquidated accounts: losses exceeded 5% but still did not set stop losses. A professional trader's 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

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