Leverage Trading: From 10x to 125x, is it a fast accumulation of wealth or a rapid evaporation of assets?
10x leverage: Suppose you have 100 yuan, using 10x leverage, you can operate assets worth 1000 yuan, as if your assets have instantly increased tenfold. 75x leverage: The same 100 yuan, using 75x leverage, allows you to control assets worth 7500 yuan, this is simply unexpected fortune! 125x leverage: This is a bold option, 100 yuan instantly becomes 12500 yuan, it feels like you are about to fly into the clouds.
10x leverage: If you profit 10000 yuan, total assets will increase to 11000 yuan, feeling extremely joyful. 75x leverage: Profiting up to 75000 yuan, total assets soar to 82500 yuan, it feels like you are about to welcome great wealth in life. 125x leverage: Profits are even more astonishing, reaching 125000 yuan, total assets approaching 137500 yuan, this is simply the pinnacle moment of life!
Liquidation Risk: Under 10x leverage, a 10% drop in asset price will trigger liquidation, while under 75x leverage, a mere 1.33% drop could lead to total loss. As for 125x leverage, it is even more sensitive; a 0.8% adverse fluctuation could render your investment worthless. Psychological Pressure: The pressure from high leverage is immense; even minor price fluctuations can leave you startled, even affecting your sleep. High Costs: Large positions mean higher trading fees and financing costs, especially for overnight positions, where costs flow out continuously like water.
Start Small: If you are a novice or have low risk tolerance, it is advisable to start with 10x leverage or lower. Set Stop-Loss Orders: Don't foolishly wait for losses; use stop-loss orders to automatically close unfavorable trades and limit losses, this is the wise choice. Risk Management: The risk of each trade should not exceed 1-2% of total capital, ensuring that you can continue to profit. Monitor Liquidation Levels: Always pay attention to market dynamics, understand at what price fluctuations your position will face liquidation risk, so you can be well-informed.
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