#合约爆仓
Cryptocurrency Contracts: The Pain of Liquidation and the Secrets to Profit
"Hey, I dared to leverage 5 times, how did I get liquidated in just 3 days?"
Old hand Lao Zhang in the cryptocurrency world smiled bitterly with helplessness. But strangely, after experiencing multiple liquidations, he can now earn a steady income from contract trading every month. The secrets behind this are not something that ordinary people can easily grasp.
When it comes to risk leverage, many people have been misled by this number. The 5x and 10x displayed on the platform look quite intimidating, but they are actually not closely related to actual risks. The key is to look at your stop-loss settings and how much capital you actually invested.
So how should one play with contracts? In a market that fluctuates by 20% at any moment, investing 10-20% of your principal each time is considered relatively prudent. For long positions, use a maximum of 4 times your principal; for short positions, you must be even more cautious and keep it within 2 times. At this point, someone is bound to say, "Being this conservative, how can one make money?"
But you must understand that the essence of trading contracts is to manage risks, not to gamble on the rise and fall of coin prices. The money you earn is actually given to you by others who get liquidated. Opportunities to make money in the market are never lacking; what is lacking is the ability to survive until the opportunity arises.
To be honest, contracts are really not for the majority of people. Spot trading is like fishing, waiting for the fish to bite; while contract trading is like fighting in a boxing ring, every punch must consider the risk, and every step could lead to being knocked down. Testing the waters, retreating, and trying again is the norm for experts.
In fact, the hardest part is not the technique, but the struggle with human nature. When you see others madly going long and making money, you have to be able to stay calm; when the market is in panic, you must dare to go against the trend; when you especially want to open a position, it is often the most dangerous time.
Here’s a thought-provoking question: why can you easily make 10%, but get liquidated when it reaches 30%? This has to do with human weaknesses.
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