Contract trading is actually a zero-sum game. When you make money, someone is losing money. If you want to make money here, you must know how to operate contract trading better than most people.
One thing that novices must pay attention to is to control and manage their positions. It is recommended that novices who have just started doing contracts should not put too much funds in them. A few thousand to ten thousand yuan is enough, and you don’t need a lot of money to play with contracts.
Let’s talk about opening a position. For example, if your capital is 2000u, it is recommended that you divide the position into 4 parts, 1 part for each transaction. In this way, even if you make a wrong judgment on the transaction and stop the loss in time, your loss will not be huge, of course. I will talk about the loss strategy later.
Position control determines your profits. Making money is nothing more than minimizing your trading losses and maximizing your profits. In addition, the protection period for Binance Futures newcomers is exactly the maximum leverage of 20 times. It is recommended that the maximum leverage should not exceed 20 times. In fact, if the margin exceeds 50% at 20 times leverage, it is easy to liquidate the position, which is too risky.
