In the currency circle, why are there a constant stream of people playing contracts?
Contract trading brings a charm of quick profit. Imagine that your monthly salary is 10,000 yuan. However, if you use this 10,000 yuan as the principal and use 100 times leverage in the contract market, you can earn 10,000 yuan as long as the price rises by 1%; if it rises by 10%, it will be 100,000 yuan.
In contrast, a month's salary may take 30 days to get, but in the contract market of the currency circle, it only takes a few minutes. How many people have a monthly salary of more than 10,000 yuan? How many people can earn 100,000 yuan a year?
When you make 10,000 yuan in a minute, would you still be willing to spend a month working?
In the currency circle, except for a few masters with large funds and low leverage who operate in a spot manner, most people who play contracts are gamblers who rely on high leverage to make wealth.
The price fluctuations in the currency circle are extremely violent, and under extreme market conditions, fluctuations of 1% to 2% may occur every second. If you are lucky, you can earn a month's salary in one second, and a year's income in a few minutes. Would you still be willing to work long and hard when you can earn a year's income in a few minutes?
Most of these people dream of getting rich instantly and think they are special and lucky. However, remember that luck does not last forever, and gamblers often end up losing all their money. Therefore, do not use high leverage at will, which is the key to long-term survival in the market.
Therefore, contract trading attracts a large number of people because it provides the opportunity to make quick profits, but it also comes with high risks. A rational attitude and risk management are the keys to long-term success.
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