Simply put, it's about making money quickly! For those who enjoy taking risks, contract trading is as thrilling as online gambling. Imagine this: you work hard to earn 10,000 in a month, and in the contract market, someone uses 10,000 with a thousand times leverage; a one-point increase can earn them 10,000. If it rises by ten points? That's 100,000, and they could earn your entire year's salary in just a few minutes! Who can resist such temptation?
Of course, some may question: 'If the direction is wrong, won't you lose everything?' At this point, you can think from a different perspective: even if you lose nine times, as long as you succeed once, you can be profitable. In the cryptocurrency market, under extreme conditions, a fluctuation of 1-2% in a second is common. If you're lucky, you might earn a month's salary in just one second!
This is why so many people choose to trade contracts in the cryptocurrency space; everyone is eager to get rich quickly. In this impatient society, most people are unwilling to slowly accumulate wealth and would rather take high risks to gamble.
Of course, some people adopt more conservative strategies. They use large positions and small leverage, and although the returns are not as high as those of gamblers, 7-8 out of 10 trades are profitable.
However, the contract market is no child's play, and liquidation incidents are common. In the past month, the liquidation funds in the cryptocurrency contract market reached $20 billion! That's not a small number, indicating that whether you have small funds or large funds, caution is necessary in the contract market.
How to avoid liquidation in the contract market?
The key lies in position management! Liquidations in contracts often occur due to excessive leverage and full position trading. Therefore, when engaging in contract trading, it is crucial to control your position and leverage. When leverage is high, the position should remain extremely low to ensure fund safety.
Remember, regardless of how the market fluctuates, we must protect our position safety. The market will always stir at some point, but the safest strategy is to place yourself in a solid fortress. You can occasionally peek out to feel the market's pulse, but you must never expose yourself to the frontline of risk.
Therefore, the only secret to trading contracts is—position management!
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