Why are so many people reluctant to trade contracts?
This notion is incorrect;
When contracts liquidate, spot prices can also go to zero;
Whether you are trading contracts or spot, it is all trading; the most important thing is the trader's own mindset and strategy;
Stop-loss is a safety valve in contract trading.
If stop-losses can be set, why do some still face liquidation?
Firstly, stop-losses can indeed limit single losses.
However, for traders with heavy positions, even with stop-losses, the psychological pressure can still overwhelm rationality, ultimately leading to liquidation.
In light contract trading, whether or not you set a stop-loss does not make much of a substantive difference;
Light contract trading has a larger margin for error, allowing you to wait until the market truly reverses before considering closing your position, instead of constantly stopping losses during the process!
It is not difficult to see that heavy positions and counter-trend operations are the real culprits.
Stop-loss is just a tool, not a lifeline in contract trading.
Avoiding liquidation relies on rational holding, trend judgment, and good emotional management. Remember, on the trading path, both mindset and strategy are important for stability and long-term success.
If you like contracts, enjoy studying charts, and researching technology, click on my avatar. I have years of experience and skills in the crypto space to share freely. I am waiting for you in the circle, always online, welcome to discuss and improve together.