People who have played with contracts may understand what I am talking about. They know all the trading disciplines, such as stop loss, take profit, and control leverage. But when they really play with contracts, they forget all of them and do not execute the stop loss when they should. They dream of carrying the order, but end up with a margin call. I believe most people have experienced this when playing with contracts. Moreover, it is easy to get carried away when playing with contracts. If you think that a small leverage is not enough, you will open a 50x leverage to pursue excitement. Behind the 50x leverage is your amplified greed. Many people have clearly chosen the right direction, but they still find that their positions have been liquidated when they wake up. Why is this? We have to talk about a term in the currency circle, "pin insertion". The so-called pin insertion is the K-bar on the technical line chart. A thin line appears and goes down or up, which means that the currency price collapses (surges) instantly but quickly stabilizes. For spot investors, there is no difference. As long as you do not sell assets at the stage of the pin, this small moment will not affect any income. It is different when playing contracts, because leverage amplifies the rise and fall. Suppose you open a 100x contract, as long as the price drops by 1% in an instant, the position will be blown up immediately, even if it rises 1,000 times later, it has nothing to do with you.

So sometimes you clearly see the trend, but your position is gone, just because the price of the currency has been pulled up at a certain moment, just contrary to your trading direction, and then you are blown up. It is better for newcomers to this market not to touch contracts.

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