Why do some people always have prejudices against contract trading?

The risk of liquidation in contract trading also exists in spot trading; if the market collapses, holding spot may also return to zero. Whether it is a contract or a spot, the core lies in the mentality and strategy of the trader.

Stop loss is a safety net for contract trading, which can limit the maximum loss of a single transaction. But for those heavy traders, even if a stop loss is set, the psychological pressure brought by extreme market fluctuations may overwhelm their rationality and eventually lead to liquidation.

For light traders, there is not much difference between setting a stop loss or not. Light trading provides a larger margin of error, allowing traders to take action after confirming that the market has truly reversed, rather than frequently stopping losses in fluctuations.

Obviously, heavy positions and counter-trend operations are the main causes of liquidation. Stop loss is just one of the trading tools, not a universal key for contract trading.

The key to avoiding liquidation lies in rational position holding, accurate trend judgment, and effective emotional management. Remember, on the road to trading, mentality and strategy are equally important. Only with both can you move forward steadily.