Why do so many people in the currency circle like to do contracts?

Contracts are so-called futures! The main leverage can be adjusted at will. Most people cannot control the greed of human nature and will always choose the highest leverage!

For example, in Bitcoin contracts, if you are fully invested 100 times, you will be liquidated if it drops 0.6%. The current market fluctuates greatly. It can be said that it will be liquidated in an instant, which is not an exaggeration at all!

But gamblers are gamblers. They will not change and always want to get rich overnight!

You must know that trading is a protracted war, not a game of getting rich overnight!

Therefore, when they enter this circle, the ending is destined to be zero.

Don't blame the market. It's not the problem of the market or the problem of any exchange. It's purely because you opened too high a leverage.

Maybe many people tell you that the market always plugs in. Isn't that nonsense! There are big accounts opening and closing positions in transactions. If you use market prices to trade, there must be corresponding plug-in behaviors. This is inevitable.

So how to avoid this risk?

The only way is to proactively reduce leverage. Generally, when the position is full, it should not exceed 3 times, otherwise it is likely that you are a leek and come to the currency circle to give money.

At the same time, you also need a good sense of risk control and stop loss. Of course, it is best not to trade with a full position at will, because this will be more passive.

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