Why is it said that contract trading will inevitably lead to liquidation?

Recently, I often hear people talking about Huobi being disconnected again and their positions being cleared again.

In fact, even if the liquidation doesn’t happen this time, it will almost certainly happen the next time or the time after that.

No matter how many billions of assets you have, you will eventually lose almost all of them in contract trading. This is the inevitable result of contract trading.

I have more than 20 years of experience in the field of commodity futures. I have also been a full-time broker for more than two years. I have been trading in the most standardized Shanghai, Dalian and Zhengzhou commodity futures exchanges in China. They are all global risk control and credit exchanges. One of the best managed exchanges.

Although their leverage is only 10 times, I have witnessed the liquidation rate of ordinary investors as high as 99%.

At present, the leverage ratio of digital currency contract transactions is mostly 30 to 50 times. Even if the issue of network disconnection is not considered, the liquidation rate is close to 100%.

Participating in contract trading is just like participating in Macau DC. In the end, those who lose are those who know nothing about high leverage and the probability of one pot and lack awe.

Even if there is no wrongdoing on the exchange, you may lose due to your own fear and greed, and eventually lose all your principal.

Moreover, digital currency exchanges are not regulated at all, and your principal is never protected.

All foreign exchange rates, index futures, highly leveraged ETFs, commodities and stocks at least have reference and financial evaluations such as production costs, asset values ​​or brand accumulation, but in the digital currency market, almost 99% of people eventually liquidate their positions.

When the price of digital currency soars, the market is filled with lawless enthusiasm. When the price falls, the market is flooded with illegal pyramid schemes, and the value is almost equal to zero.

This market is like swinging between space and the center of the earth. How dare you use leverage to gamble? Are you a god?

All those involved in contract transactions are not as simple as licking blood, and will basically suffer huge losses.

do you know?

As a party to the contract, what you pursue is the profit brought by high leverage, while the exchange is most concerned about the number of traders and the amount of capital.

Once you step onto the pirate ship of contract trading, almost all of your principal will be left behind, which has almost become the main source of income for most exchanges to continue to exist - it can also be called gambling tax.

Whenever the price of Bitcoin fluctuates significantly, we hear the news of how many billions of contracts have been cleared, and I feel very sad about this.

Alas, pity those ignorant, reckless, greedy contract traders!

As long as you participate in high-leverage contract transactions, you can make money even 99.99% of the time out of 10,000 times.

You are close to achieving financial freedom.

However, if you develop a gambling habit, eventual mistakes can leave you completely bankrupt.

This is almost the inevitable fate of more than 99.9% of contract traders.

As for how to avoid it, we can share it together.

#一起来跟单