Do you know why you shouldn’t use high multiple contracts?
Examples below:
When you trade with a high multiple contract, it will be easier to hope for a tight spread.
However, some people believe that if you want to achieve a high multiple, you must set a stop loss decisively and quickly to avoid high losses when exiting.
But what is the actual situation?
as follows:
When you stop the short position on A because you judge that it will continue to rise, the price falls back a little, forming a price difference of A. When it falls back, you feel that it is going to fall, so you continue to cover the short position.
then,
If the price does not go well, it continues to hit new highs, and the short order is stopped. After the stop loss, the price fell back again. After falling back again, it is judged again that it is going to fall and the price is chased short, forming a B price difference.
then,
The price was not going well again, and I felt that the market was targeting me, so it rose again to a new high, and then stopped the loss. When I regained my composure, the price fell back and chased the shorts again.
At this point, let’s do some statistics.
Add up the price difference of A+B+C. Oh my god, you will lose 1000 points. 1000 points is equivalent to 58 times the contract liquidation.
Some people may think so, but I only use 20x. Look carefully at this time. If the handling fee is not included, after losing 1,000 points, if your principal is 1,000, then there is currently 6,000 left.
Then when you want to continue shorting with the same position, you have actually used 150 times to place the order.
Moreover, the profit from the spread of the target value that I originally expected has become just a return on investment if it falls to the target.
And since the short position has been used 150 times, basically once it hits a new high, it is time to liquidate the position.
Therefore, it is absolutely not allowed to use high magnification for currency speculation.
If you really want to use high magnification, there is a way and it is possible.
Let me tell you, below is my exchange agent link. You are welcome to register and use it. The handling fee can be fully offset against the subscription fee, which is equivalent to the concept of 100% commission rebate, which is very cost-effective. Welcome!
Binance proxy link
https://accounts.binance.info/register?ref=VPP432J3
Don’t forget your original intention, and everyone will return to you!
I support you to fight hard, the more you buy, the more blessings you will get, and the ancestors will celebrate together!
