Because contracts can help you find your trading problems faster.

Saving version: Those who advise you not to play contracts are afraid that you can't control your positions well (or they can't control them well themselves).

If you have any of the following shortcomings in trading: like to make random judgments and operate frequently, carry orders, increase positions against the trend, calculate unclear liquidation prices... then the contract will tell you that you are wrong as quickly as possible, instead of like spot: "You are just unlucky in this cycle, and you will be financially free in the next four-year bull market cycle!".

If you trade ten times a year, then the number of samples you have for the year is only 10, and it is difficult to summarize any rules; if you trade ten times a day, then the number of samples you have in a month is equivalent to the number of samples in the previous 30 years, and there are too many opportunities to make you realize your trading problems, not to mention that for short-term trading, ten times a day is a situation with a small number of transactions.

Those who think that cryptocurrency trading will eventually explode, the essential problem is that they don't understand mathematics.

If you want to do contracts, risk control awareness and position management ° ability are necessary. Taking the calculation of liquidation as an example, new contract traders can first see if they can answer this question correctly:

The current price of Ethereum is $2000, and you open a 100x leverage to go long. It is known that the maintenance margin is half of the opening margin, so what is your liquidation price closer to?

A) $2000

B) $1980

C) $1990

D) $2020

First of all, $2000 is the opening price. If you go long, $2020 is profitable (in fact, if you use 100x leverage, you will just make up for the loss here), so AD options are excluded; some new contract traders think that "with 100x leverage, if the price goes back 1/100, you will lose everything", so the liquidation price should be 2000-20=$1980, but this is actually wrong, because:

The condition for liquidation is (initial funds + floating loss)s maintenance margin instead of ≤0. In other words, after you lose a certain amount, the remaining money is not enough to "maintain this position" and it will be settled according to liquidation. Generally, in high leverage situations, the maintenance margin is half of the opening margin.