Leverage Trading: 10x to 125x, Wealthy or Liquidated?
10x Leverage: Suppose you have 100 dollars, with 10x leverage, you can operate with 1000 dollars. Doesn't that make you feel rich instantly?
75x Leverage: Still with that 100 dollars, using 75x leverage, your funds can turn into 7500 dollars. Feeling like you got a great deal, right?
125x Leverage: This is even more intense, 100 dollars instantly becomes 12500 dollars, you might feel like you're about to soar into the sky, right?
10x Leverage: If you profit 10000 dollars, your total assets can rise to 11000 dollars, feeling pretty good inside.
75x Leverage: Profiting 75000 dollars, total assets skyrocketing to 82500 dollars, feeling like you're about to get rich.
125x Leverage: Even more exaggerated, profiting 125000 dollars, assets directly reaching 137500 dollars, this is simply the peak of life.
But don't forget the risks:
10x Leverage: A 10% drop in price could lead to liquidation.
75x Leverage: A drop of 1.33% could mean liquidation, basically watching your money disappear.
125x Leverage: A drop of 0.8% could lead to liquidation, this kind of risk is extremely high.
Psychological Pressure:
The heart burden of high leverage can be significant, with even small market fluctuations, your heart rate accelerates, and you can't sleep peacefully.
High Costs: With higher leverage, trading costs and financing costs also skyrocket, especially overnight positions, money flows out like water.
How to operate more safely?
Start small: If you are a beginner, or cannot accept high risks, it's advisable to start with 10x or lower leverage.
Set Stop-Loss Orders: Don't wait to lose money, set up stop-loss orders to automatically close positions and avoid larger losses.
Control Risks: Keep the risk of each trade within 1-2% of total assets, this ensures you can steadily make money each time.
Monitor Liquidation Levels: Always pay attention to market fluctuations, understand the liquidation level of your positions, stay calm, and don't be frightened by sudden risks.
Opportunities and risks coexist with leverage; maintaining a steady mindset and doing good risk management is the key to gaining an advantage in this game!