Contract Market: Dream of Riches and Warning Bell of Liquidation

Click the avatar to watch the live broadcast and chat!

Why does the contract market attract countless players? Ultimately, the thrill and opportunities for wealth in contracts are hard to believe.

The Temptation of Instant Wealth

For those who love adventure, the charm of contract trading is:

With a capital of 10,000 and 1000x leverage, a 1% price increase can earn 10,000, and a 10% increase can yield 100,000; three times the profit is even higher than a year's salary for many! This wealth effect, who can resist? Many still fall into the belief of “nine losses and one success,” waiting for the next comeback after correcting a wrong direction that led to losses.

The Psychology of Quick Wealth in a Hasty Society

In this age that pursues speed, most people are unwilling to wait for wealth accumulation and prefer to take high risks for a chance at overnight riches. The high volatility of the contract market, especially the momentary 1-2% fluctuations during extreme market conditions, just provides the soil for this mindset.

The Strategy of Conservative Traders

Of course, not everyone is keen on taking risks. Some honest players adopt a strategy of large positions with small leverage to reduce risk and pursue a higher win rate. Although the profits may not be as exaggerated as the risk-takers, the stability of winning 7-8 out of 10 trades can still yield considerable long-term returns.

The Cost Behind Risks: Liquidation Crisis

However, high returns in the risk market come with risks. Statistics show that the liquidation funds in the cryptocurrency market can reach as high as 20 billion USD in a month! Whether past small investors or large whales, everyone in the contract market needs to be cautious.

Key to Avoiding Liquidation: Position Management

To stand invincible in the contract market, the core lies in position management:

Control Leverage: The leverage and position must be kept low to avoid significant declines caused by minor market fluctuations. Reasonable Allocation of Funds: Avoid full margin trading to ensure sufficient liquidity to cope with sudden market movements.

Remember, although the market is ever-changing, only solid position management can help you stand firm in the market. By maintaining a bottom line and rejecting impulsiveness, one can find their own rhythm in the tempting contract market.

The secret lies in: guarding with risk opportunities and welcoming the future with position!

Click the avatar to watch the live broadcast and chat!