Why is trading contracts often called a 9 out of 10 bets?

Some people believe that who did we actually lose to? The answer is that we lost to the counterparty. When the market falls, if you open a long position, you will lose to the person who opens a short position. These operations may lead to a liquidation and eventually become the counterparty's interests.

Although from a probabilistic point of view, regardless of the impact of a bull or bear market, the result of trading contracts should be 50-50, similar to the probability of flipping a coin. However, why are there so few people who can make money by opening contracts? This involves the fact that the contract market is not only affected by market trends, but also by factors such as technology and information.

In the contract market, institutional users and professional traders sometimes use their technology and market insights, and even collude with exchanges to conduct directional operations, such as pinning to cause double quotes for long or short positions, thereby distorting the probability of winning that should be 50-50, causing many people to end up in a situation where they lose 9 out of 10 bets.

After understanding these complexities of the contract market, many people still find it difficult to resist the temptation to participate. This is because of human factors. On the one hand, there are people who have made money in the contract market, and on the other hand, they hope to recover their costs as soon as possible after a loss.

The combined effect of these two factors has made many people become "leeks" in the market, unable to escape the risks and losses brought by the contract market.

The window of opportunity is short, and success does not rely solely on luck. For more details, please check the homepage. Choice is better than hard work, and the circle determines destiny

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