How can you maximize profits when going long or short in the crypto contract market? What are the tips?
The contract market has never been a gambling game; after all, you don't want to get liquidated, right...
There's no need to focus on leverage; risk and leverage are unrelated. Opening a few hundred times leverage is no different from opening a few times leverage; the only difference is how many coins you use leverage to buy.
If you only use 100 times leverage to buy one Ethereum, then you only need to spend $35 to purchase one Ethereum (current price of Ethereum ÷ leverage multiplier), and your margin is $3500, so Ethereum needs to fluctuate 3500 points before you get liquidated.
But if you buy another Ethereum with $3500, then your risk will double, and your profit will also double. Each point of fluctuation means you gain or lose $2, so your liquidation point is at 1750.
The principal is $3500, and the current price of one Ethereum is $3500, but using 100 times leverage allows you to buy one Ethereum for $35. Buying another Ethereum means your profit increases, but so does your risk.
They say that 100 times leverage is for warriors; in fact, it's about using a principal of $3500 to buy 100 Ethehreum, where every point of fluctuation is a floating profit or loss of $100, with a fluctuation of 35 points flipping the position or a reverse fluctuation of 35 points leading to liquidation.
At this point, your risk is only 35 points.
But who told you that trading contracts is about risking 35 points?
That's gambling!
Contracts are always an art of risk control. From the moment they were born, they were meant to help you manipulate risk, whether it's stop-loss or take-profit; it's just a process of a trader controlling risk, and the ultimate profit comes from your risk control.
A battle of human nature begins here; every time you open a position, only by eliminating dopamine can you officially enter the trading game, without constantly feeling, 'Wow, this feels great,' regardless of whether you lose or gain, and then going for the next trade, 'Wow, this is really exciting.'
In the crypto world, if you don't have a good circle, no firsthand information from the crypto world, and if you want to flip your position, then it's advised you follow the master here to help you get on shore. Welcome to join the team!