Contract trading, with its high-risk and high-return characteristics, is known as a double-edged sword, which can quickly accumulate wealth and swallow capital in an instant.

Analysis of the deep reasons for the high risk of contract trading:

1. The extreme phenomenon of long and short explosions: In the violent market fluctuations, whether it is a rising or falling market, contract traders may face the risk of liquidation, that is, "long and short double explosions".

This reveals the cruel reality of contract trading: even if the market trend is optimistic in the long term, extreme fluctuations may cause long positions to be liquidated in the short term, and vice versa. Therefore, the profit of the contract is not absolutely positively correlated with the general direction of the asset.

2. Unpredictable volatility path: Contract traders often expect the market to continue to run in the expected direction, but the reality is often more complicated. Even a seemingly clear unilateral market may be accompanied by repeated shocks, that is, the trend of "step back and three steps forward", making it difficult for contract positions to withstand sudden market fluctuations.

3. The double-edged sword of leverage effect: Contract trading generally adopts a leverage mechanism, which can magnify the benefits, but also greatly compresses the safety margin. Once the market trend goes against expectations, the leverage effect will multiply the losses, making it easier for investors to reach the edge of liquidation.

Due to its high unpredictability and leverage effect, the gambling nature of contract trading has become increasingly prominent, and it places extremely high demands on investors' risk tolerance. In contrast, the prudent strategy in the secondary market - selecting high-quality assets, holding spot, and selling at the right time, is more reliable and sustainable. This is not only an effective way to avoid the high risk of contract trading, but also the key to achieving long-term stable returns.

If you have been chasing ups and downs, often being trapped, and have no latest news in the currency circle, friends who have no direction, click on the avatar to follow me, more information on the homepage, bull market strategy escape skills to screen potential currency logic.

#美国大选如何影响加密产业？ #德国政府转移比特币 #Mt.Gox将启动偿还计划