About leverage, many people have a misunderstanding that a high multiple is high leverage. In fact, the real "high leverage" depends on how much total funds you use to open a position.
Imagine that if you use U-standard contract trading, set a 10x leverage, but only use 10% of the total funds as margin, it is actually the same as not adding leverage, just like you bought spot directly.
Similarly, using 5% funds under 20x leverage and 1% funds under 100x leverage will have the same effect.
The real key lies in your "total position leverage", that is, the ratio of your total funds to the amount of the position opened. If this ratio exceeds 3 to 5 times, it is considered a very high leverage.
For example, if you have 100,000 yuan, but open a position of 400,000 yuan, that is 4x leverage, which is quite risky.
In order to pursue high returns, some people directly use all their principal as margin to open orders, with leverage as high as 10 times, 20 times or even higher.
This is like walking on a tightrope. If you are not careful, you will fall badly. If it were so easy to make money, the world's richest people would be everywhere.